1. At the beginning of the each financial year, NSFDC shall notionally allocate funds to the SCAs, in proportion to the Scheduled Caste population of the country represented by the respective State/UT Administration. The SCAs are, in turn, required to further make district-wise allocation in accordance with the same principle.
  2. The status of notional allocation vis-à-vis actual for each financial year, as on 31st August, shall be reviewed by NSFDC before 15th of September of that year, and in case allocated funds have not been availed by any SCA, the funds earmarked for the SCA may be re-allocated to other States(s)/UT(s).
  3. From the financial year 2016-17 onwards, twenty percent of the notional allocation will be set aside for the cluster development.  The targets for cluster development shall be reviewed on quarterly basis.  The review shall be held by 10th of succeeding month after end of each quarter and the un-availed portion of quarterly allocation for cluster development shall be transferred to performing channel partners that are willing to avail that amount for cluster development, on fulfillment of prudential norms.  Only in exceptional circumstances the SCAs will be permitted to utilize the notional allocation for cluster development for other purposes.


S. No.

Unit Cost

% of National Allocation

a. Projects costing upto Rs 0.50 lakh 30%
b. Projects costing above Rs 0.50 lakh and upto Rs 1.00 lakh 30%
c. Projects costing above Rs 1.00 lakh and upto Rs 5.00 lakh 30%
d. Projects costing above Rs 5.00 lakh and upto Rs 10.00 lakh 5%
e. Projects costing above Rs 10.00 lakh and upto Rs 30.00 lakh 5%


  1. At the time of notional allocation of funds to SCAs at the beginning of financial year, funds equivalent to 50% of notional allocation for projects costing upto Rs 1.00 lakh of each SCA, shall be released to the SCAs in advance, after receipt of Action Plan, to implement projects costing upto Rs 1.00 in the prescribed ratio. The SCAs shall furnish utilization of these funds within 120 days of its release by NSFDC.
  2. In addition, 50% of the notional allocation separately made for Micro Credit Finance (MCF) and Mahila Samriddhi Yojana (MSY) schemes for each SCA shall also be released in advance on receipt of Action Plan for implementation of these schemes which are to be utilized within 120 days from date of disbursement.
  3. The release of these funds to SCAs shall however be subject to fulfillment of Prudential Norms such as (a) availability of adequate Government Guarantee/Bank Guarantee (b) There should not be any overdues payable to NSFDC which is more than one year old at the end of the preceding financial year (c) There should be a minimum of 80% cumulative utilization level of funds disbursed in the last three financial years as at the end of preceding month. (d) There should not be any funds lying unutilized which were disbursed prior to the last three financial years excluding the current financial year.


Further, the SCAs are required to endeavour to cover target groups in accordance with the priorities laid down as under:

  1. Educated unemployed/underemployed 50%
  2. Women 40%
  3. Others 10%


The SCAs are required to endeavour to achieve sectoral priorities in accordance with the percentages listed below:
Sectoral  Allocation

  1. Agriculture & Allied 50%
  2. Service 40%
  3. Industry 10%

6. SECURITY SCAs shall provide Government Guarantee/Bank Guarantee to the NSFDC for the funds sanctioned to them, preferably as block guarantee.

Managed by: Ratikanta Jena (
on 08 November, 2016