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The Central Sector Scheme 'National Means-cum-Merit Scholarship Scheme' was launched in 2008 with approval from CCEA. Its aim is to provide scholarships to bright students from economically weaker sections to prevent them from dropping out after class VIII and encourage them to continue their education at the secondary stage. Each year, one lakh new scholarships are awarded to selected class IX students, and they can renew the scholarship for classes X to XII to study in State Government, Government-aided, and Local body schools. The scholarship amount was increased to Rs. 12,000 per annum from April 1, 2017 (previously Rs. 6,000 per annum). The Cabinet has approved the continuation of the Scheme from FY 2021-22 to FY 2025-26 with a total allocation of Rs. 1827 crores.
Eligibility Criteria: Students with parental income not exceeding Rs. 3,50,000 per annum are eligible for the scholarship. They must have a minimum of 55% marks or equivalent grade in Class VII examination to appear for the selection test (relaxable by 5% for SC/ST students). The students should be studying as regular students in Government, Government-aided, and local body schools. Students of NVS, KVS, and residential schools are not eligible for the scholarship. There is reservation as per State Government norms.
Selection Process for Fresh Awardee Students: Each State/UT conducts its own test for selecting students for the scholarship. The test is conducted at the class VIII level and includes a Mental Ability Test (MAT) and a Scholastic Aptitude Test (SAT). Students must pass both tests with at least 40% marks in aggregate (32% for SC/ST students) to qualify for the scholarship.
Selection Process for Renewal Awardee Students: Awardees must obtain a minimum of 60% marks in Class X to continue the scholarship (relaxable by 5% for SC/ST candidates). They should also pass from class IX to X and from class XI to XII in the first attempt to continue the scholarship in classes X and XII.
Disbursal of Scholarship: The scheme is fully integrated into the National Scholarship Portal (NSP) since 2018-19. The Ministry sanctions funds from the Annual Budget Provision to SBI, the implementing bank for the scheme, for disbursing scholarships directly into students' bank accounts via Direct Benefit Transfer (DBT) through Public Financial Management System (PFMS).