National Family Benefit Scheme

The National Family Benefit Scheme (NFBS) is a social security program implemented by the Government of India to provide financial assistance to families living below the poverty line (BPL) in the event of the death of the primary breadwinner. This scheme aims to help alleviate the financial burden faced by BPL families during times of crisis and ensure that they have access to necessities

Introduction

The sudden loss of a family’s primary breadwinner can be devastating. Not only is there emotional grief, but the financial burden can be overwhelming. In India, the National Family Benefit Scheme (NFBS) acts as a safety net, providing much-needed financial assistance to families living below the poverty line (BPL) who experience this hardship.

What is the National Family Benefit Scheme (NFBS)?

The NFBS is a social security program launched by the Ministry of Rural Development (MoRD) under the National Social Assistance Programme (NSAP). It provides a one-time lump sum financial assistance of ₹20,000 (approximately USD 240 as of July 2024) to BPL families who lose their primary breadwinner between the ages of 18 and 59.

Who is Eligible for the National Family Benefit Scheme?

The NFBS targets families living below the poverty line as defined by the Government of India. To be eligible, the following criteria must be met:

• BPL Status: The family must be officially recognized as BPL by the government.
• Age of the Deceased Breadwinner: The primary breadwinner must have been between 18 and 59 years old at the time of death.
• Cause of Death: The cause of death is immaterial. The scheme provides support irrespective of whether the death was due to natural causes, accident, or illness.

Who is Considered a Breadwinner?

The NFBS recognizes both traditional and non-traditional breadwinners. This includes:

• Working Spouse: A spouse who contributes financially to the household.
• Earning Parent/Sibling: A parent or sibling who provides financial support to the family.
• Homemaker: A spouse who manages the household and may not have a formal paying job is also considered a breadwinner for NFBS.

Benefits of the National Family Benefit Scheme

The NFBS offers crucial support to BPL families facing a financial crisis due to the loss of their primary earner. Here’s how it benefits them:

• Financial Relief: The lump sum amount provides immediate financial assistance to cover immediate expenses and necessities.
• Reduced Stress: By easing the financial burden, the scheme helps families focus on coping with their grief.
• Empowerment: Financial aid empowers families to make essential decisions during a difficult time.

How to Apply for the National Family Benefit Scheme

The application process for NFBS is handled at the state level. Here’s a general overview of the steps involved:

1. Contact Local Authorities: Families can approach their local Gram Panchayat (village council) or authorized government office for details and application forms.
2. Documentation: The application requires documents such as the death certificate of the breadwinner, BPL ration card, and proof of relationship between the deceased and the applicant.
3. Verification and Approval: Local authorities will verify the documents and forward the application for approval.

Online Application Process

there are digital alternatives for submitting documents for the National Family Benefit Scheme (NFBS). The application process can be done online in some states, while in others, it is still primarily offline. Here are some key points regarding the digital submission of documents:

Some states, such as Uttar Pradesh, have an online application system for the NFBS. In these states, applicants can submit their applications and documents digitally. The process typically involves:

• Visiting the official website of the social welfare department https://nfbs.upsdc.gov.in/NFBS2022_23/index.aspx or  https://nfbs.upsdc.gov.in/
• Registering and creating an account
• Filling out the online application form
• Uploading scanned copies of the required documents
• Applying electronically

Important Points to Remember

• The NFBS is a one-time financial assistance program.
• The scheme is entirely funded by the Central Government of India.
• There is no specific deadline to apply, but an earlier application ensures faster processing.

Required documents

To apply for the National Family Benefit Scheme (NFBS), the family must submit an application along with the following documents:

1. Death certificate of the deceased: A copy of the death certificate issued by the competent authority, such as the municipal corporation or the panchayat, is required to prove the death of the primary breadwinner.
2. Proof of the family’s BPL status: The family must provide proof of their Below Poverty Line (BPL) status, such as a BPL ration card or a certificate issued by the competent authority.
3. Proof of the deceased’s age: The family must submit a copy of the deceased’s birth certificate, Aadhaar card, or any other valid age proof document to establish that the deceased was between 18 and 59 years old at the time of death.
4. Proof of the deceased’s relationship with the applicant: The applicant must provide proof of their relationship with the deceased, such as a marriage certificate, birth certificate, or any other valid document.
5. Applicant’s identity proof: The applicant must submit a copy of their identity proof, such as an Aadhaar card, PAN card, or voter ID card.
6. Applicant’s address proof: The applicant must provide a copy of their address proof, such as a ration card, electricity bill, or water bill.
7. Bank account details: The applicant must submit their bank account details, including the account number and IFSC code, to facilitate the transfer of the financial assistance.
8. Affidavit: The applicant may be required to submit an affidavit declaring that the information provided in the application is true and that the family is living below the poverty line.

It is important to note that the required documents may vary across states, and the applicant should check with the concerned authorities for the specific requirements in their state.

To ensure a smooth application process, the applicant should ensure that all the required documents are complete and accurate. In case of any difficulties in obtaining the documents, the applicant should seek assistance from the concerned authorities or local civil society organizations.

Limitations of the National Family Benefit Scheme

While beneficial, the NFBS has some limitations:

• One-Time Assistance: The scheme offers only a one-time financial aid, which may not be sufficient for long-term needs.
• Limited Amount: The amount provided may not fully address all financial needs, especially in larger families.
• Awareness: Lack of awareness about the scheme can prevent eligible families from applying.

Implementation and Monitoring

The NFBS is implemented by the Ministry of Rural Development, Government of India, in collaboration with state governments. At the state level, the scheme is monitored by designated officers, such as the Social Security Officer (SEO) and the Welfare Extension Officer (WEO).

Regular social audits are conducted to ensure transparency and accountability in the implementation of the scheme. These audits involve the participation of the community and aim to identify any discrepancies or issues in the delivery of benefits to the intended beneficiaries

How does the National Family Benefit Scheme impact rural poverty

The National Family Benefit Scheme (NFBS) aims to provide financial assistance to families living below the poverty line in the event of the death of the primary breadwinner. While the scheme has the potential to significantly impact rural poverty, its effectiveness has been limited due to several challenges.

Eligibility Criteria and Benefit Amount

Under the NFBS, eligible families receive a one-time lump sum financial assistance of Rs. 20,000 if the deceased was between 18 and 59 years old at the time of death. However, the benefit amount is considered inadequate, as it fails to provide meaningful support to families who have lost their primary earner.

Implementation Challenges

The NFBS faces several implementation challenges, including:

• Low budget allocations: The central government’s expenditure on NFBS has declined from Rs. 862 crore in 2014-15 to Rs. 481 crore (revised estimates) in 2020-21, effectively phasing out the scheme.
• Restricted coverage: The scheme is limited to families living below the poverty line, which excludes many vulnerable households. The BPL lists are often outdated and unreliable, leading to exclusion errors.
• Administrative hurdles: Beneficiaries often face difficulties in applying for the scheme due to complex procedures and lack of awareness. Many eligible families are unable to access the benefits due to these hurdles.

Potential Impact on Rural Poverty

If implemented effectively, the NFBS has the potential to significantly impact rural poverty by:

• Providing immediate financial relief: The one-time assistance can help families cope with the immediate financial needs arising from the loss of the primary earner, preventing them from falling deeper into poverty.
• Promoting social security: By ensuring a minimum level of financial support to vulnerable households, the scheme contributes to the overall social security framework in rural areas.
• Empowering women: The scheme’s eligibility criteria include the death of adult women who are homemakers, recognizing their contribution to the household and promoting gender equity.

Recommendations for Improvement

To enhance the impact of the NFBS on rural poverty, the following measures can be considered:

• Increasing the benefit amount: The one-time assistance should be revised to provide meaningful support to bereaved families, considering factors such as per capita GDP and cost of living.
• Expanding coverage: The scheme should be extended to all vulnerable households, regardless of their BPL status, to ensure that no one is left behind.
• Simplifying application process: The application procedure should be streamlined and made more accessible to beneficiaries, with increased awareness campaigns and support for filing applications.
• Strengthening monitoring and evaluation: Regular monitoring and evaluation of the scheme’s implementation should be conducted to identify and address challenges, ensuring that the benefits reach the intended beneficiaries.

In conclusion, while the National Family Benefit Scheme has the potential to significantly impact rural poverty, its effectiveness has been limited due to challenges in implementation. By addressing these challenges and strengthening the scheme’s design and delivery, the government can ensure that vulnerable families in rural areas receive the support they need to cope with the loss of their primary breadwinner and prevent them from falling deeper into poverty.

The main challenges in implementing the National Family Benefit Scheme

The National Family Benefit Scheme (NFBS) faces several challenges in its implementation, which have limited its effectiveness in providing financial assistance to families living below the poverty line in the event of the death of the primary breadwinner. The main challenges are:

Low Budget Allocations

The central government’s expenditure on NFBS has declined from Rs. 862 crore in 2014-15 to Rs. 481 crore (revised estimates) in 2020-21, effectively phasing out the scheme. The low budget allocations make it difficult to expand the scheme’s coverage or increase the benefit amount.

Restricted Coverage

The NFBS is limited to families living below the poverty line, which excludes many vulnerable households. The BPL lists are often outdated and unreliable, leading to exclusion errors. This restricted coverage means that many families in need of assistance are unable to access the benefits.

Inadequate Benefit Amount

The one-time financial assistance of Rs. 20,000 provided under the NFBS is considered grossly inadequate for the dignified survival of a poor family that has lost its primary breadwinner. The benefit amount has not been revised since 2012, failing to keep pace with the increasing cost of living.

Administrative Hurdles

Beneficiaries often face difficulties in applying for the NFBS due to complex procedures and lack of awareness. Many eligible families are unable to access the benefits due to these administrative hurdles, such as the requirement to submit multiple documents and the lack of support in filing applications.

Lack of Monitoring and Evaluation

There is a lack of regular monitoring and evaluation of the NFBS’s implementation to identify and address challenges. Without proper monitoring, issues such as delays in the processing of applications and the disbursement of funds, and the misuse of funds, remain unaddressed.

To overcome these challenges and improve the implementation of the NFBS, the government needs to increase budget allocations, expand the scheme’s coverage, revise the benefit amount, simplify the application process, and strengthen monitoring and evaluation mechanisms. By addressing these issues, the NFBS can become a more effective tool in providing financial support to vulnerable families during times of crisis and reducing the impact of poverty.

Enhancing the National Family Benefit Scheme

Here are some suggestions to improve the effectiveness of the NFBS:

• Increased Awareness: Spreading awareness through local campaigns and community outreach programs can ensure more eligible families benefit from the scheme.
• Enhanced Amount: Considering the rising cost of living, an increase in the financial assistance amount could provide more substantial support.
• Long-Term Support: Exploring options for extending support beyond a one-time payment, such as skill development programs or scholarships for children, could offer long-term benefits.
• Faster Processing: Streamlining the application process and ensuring timely approvals can minimize financial hardship for families.

FAQs on the National Family Benefit Scheme

Is there an income limit for applying for NFBS?

No, there is no separate income limit for NFBS. However, the family must be recognized as BPL.

Can a non-resident Indian apply for NFBS?

No, the NFBS is only applicable to families residing in India.

What documents are required for applying for NFBS?

The documents required may vary slightly by state. Generally, it includes a death certificate, BPL ration card, and proof of relationship.

What is the amount of financial assistance provided under the NFBS?

Eligible families receive a one-time lump sum financial assistance of Rs. 20,000.

How can a family apply for the NFBS?

The family must submit an application along with supporting documents to the concerned authorities.

Who implements and monitors the NFBS?

The scheme is implemented by the Ministry of Rural Development, Government of India, in collaboration with state governments. At the state level, it is monitored by designated officers such as the SEO and WEO.

Conclusion

The National Family Benefit Scheme is a commendable initiative by the Government of India to provide a safety net for BPL families facing the loss of their primary breadwinner. While limitations exist, the scheme offers much-needed financial relief during a critical time. By addressing limitations and exploring avenues for improvement, the NFBS can become an even more effective social security program, empowering vulnerable families to cope with loss and rebuild their lives.

However, to maximize the impact of the scheme, it is essential to address the challenges faced in its implementation and to ensure that the benefits reach the intended beneficiaries in a timely and efficient manner. This requires sustained efforts from the government, civil society organizations, and the community at large to raise awareness, streamline processes, and monitor the delivery of services.

By strengthening the NFBS and ensuring its effective implementation, the government can contribute to the overall social and economic well-being of the most vulnerable sections of society and work towards achieving the goal of inclusive development

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