**Summary:**
This document summarizes the Indian government's response to questions regarding the System for Pension Administration Raksha (SPARSH) and its impact on fund flow mechanisms for Centrally Sponsored Schemes (CSS).
SPARSH, launched in October 2020 as a Digital India initiative, aims to streamline the management of Defence pensions by providing a comprehensive and transparent solution for sanctioning and disbursing pensions to Armed Forces personnel and Defence Civilians. As of August 2025, approximately 31.46 lakh out of 34.08 lakh defence pensioners have been onboarded onto the SPARSH system.
The implementation of SNA SPARSH aims to enhance transparency in the flow of CSS funds to States, improve monitoring of fund utilization, and eliminate the float of CSS funds outside the Consolidated Funds of India and States, thereby reducing government borrowing costs. SNA SPARSH has eliminated delays in the transfer of Central and State shares of CSS funds to Implementing Agencies (IAs), with funds being released directly to beneficiaries and vendors by the Reserve Bank of India (RBI).
Currently, 1011 State Linked Schemes under 26 CSS have been onboarded on SNA SPARSH in 29 States and Union Territories (UTs) with Legislatures. In the fiscal year 2025-26, Central Share of Rs. 8818.45 crores has been released under various CSS through SNA SPARSH as of August 5th, 2025.
The implementation of SNA SPARSH, the Central Nodal Agency (CNA) model, and the Treasury Single Account (TSA) has improved fund flow under CSS and Central Sector Schemes by enhancing transparency, reducing float, and facilitating just-in-time release of funds from both Central and State Consolidated Funds, leading to improved cash management.
Key Entities Referenced
SNA SPARSH: System for Pension Administration Raksha, a single nodal agency for managing Defence pensions and enhancing transparency in flow of Centrally Sponsored Schemes (CSS) funds to States.
Centrally Sponsored Schemes CSS: A category of schemes funded by the Central Government and implemented by the States.
Digital India: A Government of India initiative that promotes digital technology.
Armed Forces: Military forces of India, whose personnel receive pensions managed through SNA SPARSH.
Reserve Bank of India RBI: The central bank of India, responsible for releasing funds directly to beneficiaries and vendors under the SNA SPARSH model.
Consolidated Fund of India: The main account of the Government of India for its revenues and expenditures.
Consolidated Fund of States: The main account of each State government for its revenues and expenditures.
29 States and Union Territories UTs with Legislature: The number of States and Union Territories with Legislature where State Linked Schemes under Centrally Sponsored Schemes have been onboarded on SNA SPARSH.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
LOK SABHA
UNSTARRED QUESTION No. 3560
TO BE ANSWERED ON MONDAY, AUGUST 11, 2025/SHRAVANA 20, 1947 (SAKA)
SNA SPARSH
3560. Shri Yogender Chandolia:
Dr. Lata Wankhede:
Shri Bibhu Prasad Tarai:
Shri Praveen Patel:
Will the Minister of FINANCE be pleased to state:
a) the objective of starting SNA SPARSH, a System for Pension Administration (Raksha),
a single nodal agency;
b) the extent to which it is useful for ensuring timely release of payments;
c) whether SNA SPARSH will also helpful to States to utilise the funds released by the
Government for Centrally Sponsored Schemes (CSS);
d) the number of schemes onboarded and the total quantum of transactions made on SNA;
e) whether the implementation of Treasury Single Account a Single Nodal Agency (SNA),
Central Nodal Agency (CNA), and SNA-SPARSH has improved fund flow
mechanisms; and
f) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (f): System for Pension Administration – Raksha (SPARSH) was launched in October
2020. It is a ‘Digital India’ initiative that aims to provide a comprehensive, transparent and
efficient solution for managing Defence pensions, including sanctioning and disbursing
pensions to the Armed Forces personnel and Defence Civilians living across the country. Out
of the total 34.08 lakh defence pensioners, approx. 31.46 lakh have been onboarded on Raksha
(SPARSH).The objective of starting SNA-SPARSH is to enhance transparency in flow of Centrally
Sponsored Schemes (CSS) funds to States and better monitoring of their utilization. It also
strives to eliminate float of CSS funds outside the Consolidated Fund of India and Consolidated
Fund of States, thereby reducing borrowing cost of the Government. SNA SPARSH has
eliminated the delay in transfer of Central and State share of CSS funds by State treasuries to
CSS Implementing Agencies (IAs). Funds under this model are released by the Reserve Bank
of India (RBI) directly to the bank accounts of beneficiaries and vendors.
Presently, 1011 State Linked Schemes under 26 CSS have been onboarded on SNA SPARSH
in 29 States and Union Territories (UTs) with Legislature. Further, in 2025-26, Central Share
of Rs. 8818.45 crores has been released under various CSS through SNA-SPARSH
till 5thAugust, 2025. SNA SPARSH, Central Nodal Agency (CNA) model and Treasury Single
Account (TSA) have improved flow of fund under Centrally Sponsored and Central Sector
Schemes by enhancing transparency, reducing float, and facilitating just-in-time release of
funds from both Central as well as State Consolidated Funds, leading to better cash
management.
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