What happened (Lok Sabha written reply, 30 July 2026)

On 30 July 2026, Minister of State for Rural Development Shri Kamlesh Paswan stated in a Lok Sabha written reply that the National Family Benefit Scheme (NFBS) releases funds to States and Union Territories (UTs) based on proposals received from States/UTs, subject to State/UT-wise beneficiary caps. The Ministry also stated that NFBS fund releases for 2026-27 are being routed through the SNA-SPARSH mechanism after State/UT onboarding.

Background: how NFBS fund release works

Under NFBS, the Ministry releases financial assistance to States/UTs on the basis of proposals received from them. Release of funds is subject to a State/UT-wise cap/ceiling on the number of beneficiaries. The Ministry processes complete proposals expeditiously. The Ministry regularly asks States/UTs through letters and review meetings to submit complete proposals in a timely manner to enable early processing and disbursement.

What changed for 2026-27: routing through SNA-SPARSH and Mother Sanction

From 2026-27, the Ministry stated that NFBS funds are being released through the SNA-SPARSH mechanism. Under SNA-SPARSH routing, States/UTs that have legislature onboard complete the onboarding process on SNA-SPARSH. After onboarding, States/UTs can utilise the NFBS Mother Sanction issued by the Ministry for disbursement of NFBS benefits. For the first instalment of 2026-27, the Ministry issued a Mother Sanction of ₹369.25 crore to States/UTs. The Ministry continues follow-up with other States/UTs to complete onboarding on SNA-SPARSH and provides handholding and technical support for early onboarding.

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