As a sensitive social security measure targeting at the poorest section of the society, National Family Benefit Scheme is being implemented in the State with 100% Govt. of India's assistance since 15th August 1995 as the second component of National Social Assistance Programme (NSAP) of the Ministry of Rural Development, Govt. of India. The main objective of the scheme is to rehabilitate to a downtrodden BPL family on the event of death of its primary bread winner.

Under this Scheme, a one time lump sum  financial assistance of   Rs.10,000/-  is given to a bereaved BPL family on the death of its  primary breadwinner  in the age group of 18-64 years (in case of normal death up to 1st August, 1998 it was Rs.5000/-). This amount is given to such surviving member of the ‘household’ of the deceased who, after local inquiry, is determined to be the head of the household. The household includes spouse, minor children, unmarried daughters and dependent parents. In case of the death of an unmarried adult, the term ‘household’ would include minor brothers/sisters.

From 1995-96 to 2001-02, Govt. of India in the Ministry of Rural Development were releasing funds under the Scheme directly to the districts for implementation of the scheme. But, from the financial year, 2002-03 the Scheme has been transferred to the State Plan and the Govt. of India is releasing funds in the form of ACA tying up with the funds for NOAP and Annapurna Yojana for being routed through the State Plan Budget. During the  year, 2005-06  the State Govt. had made a budget provision of Rs.426.00 lakhs under the Scheme and this amount had been allocated among the districts for payment to the beneficiaries.

During the year 2006-07, an amount of Rs.1303.00 lakh has been provided in the State Plan Budget under the Scheme. This amount will be released in favour of the district after receipt funds from the Govt. of India.