Frequently Asked Questions (FAQs)
28. What is the Fund Flow Mechanism?
The Critical Gap Funding (CGF) approved for the Rurban Cluster will be transferred from Ministry to the State Government, which in turn will ensure that it will be credited into a dedicated bank account maintained by the SNA. The CGF for each cluster will be divided into three instalments, over a period of three years, in accordance with the project schedule finalized during the approval of the SPMRM project.The SNA would then transfer the funds for the development of the clusters to a dedicated bank account at the District Level. The District Collector shall utilize the funds from this account for the components of the ICAP proposed to be funded by CGF. The State Governments/Gram Panchayats may utilize these dedicated bank accounts for channelizing any additional funding for the Rurban cluster. For Central Sector, Centrally Sponsored and State Sector schemes converged under the National Rurban Mission (NRuM) for a cluster, the fund flow arrangement shall be in accordance with the relevant Scheme Guidelines and these funds will not be routed through the dedicated bank accounts at the State and the district level.

29. What is the Fund release pattern under this Mission?
  The Ministry shall release Rs. 35 lakhs (Rupees thirty five lakhs only) per Rurban cluster approved in the State for preparation of ICAPs. This will be adjusted against the 2% administrative budget for each State. The funds would be released in three instalments at appropriate stages of the project cycle as illustrated below.
The first instalment -- 30% of CGF will be released after the approval of the ICAP by the Ministry.
The second instalment -- 30% of CGF will be released after submission of DPR approvals by SLEC, approval of the final CGF for the project by the Ministry, which will be followed with commencement of construction activities at the site.
The third instalment -- 40% of CGF will be released after submission of Utilization Certificate in accordance with GFR rules and a field visit by Ministry.

The SNA shall transfer 35% of the CGF received as third instalment to the Project and the balance 5% of the CGF shall be transferred by the SNA after completion of construction of all project components. The SNA shall verify the completion of the project through site visits. A copy of the completion report will have to be sent to the Ministry for information and record.