The decision came a day after a large number of medical students held a protest at Nirman Bhawan here against the proposal.
The students, who were protesting against increasing the duration of MBBS course from the existing 5.5 years to 6.5 years with the addition of a compulsory one-year rural posting, were reportedly cane-charged by the police yesterday.
Today's decision came after Azad's meeting with the representatives of agitating students of medicine here.
"He listened to all their concerns patiently and allayed their fears regarding Medical Council of India notification in respect of one year mandatory rural posting of PHC after completion of MBBS, before they seek admission to PG Course.
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"The Minister has directed concerned officials of the Ministry to keep the notification in abeyance," a Health Ministry release said here.
A letter to this effect has already been issued to the Medical Council of India, it said.
He also said that rural posting will not be mandatory for appearing in PG examination for the year 2015-16.