Concept of SNA

Concept of SNA (Single Nodal Agency)

Central Government gives their share for Centrally sponsored schemes to all states and union territories. Each State/UTs therefore requires conveying Central Government an SNA (Single Nodal Agency) for each Centrally Sponsored Schemes to receive funds in that single account. This requires each State to identify and designate a SNA for every scheme.

States will open a unique bank account at a commercial bank responsible for all transactions related to the implementation of the particular Centrally Sponsored Schemes like National Health Mission. All funds for that State in a particular scheme are now credited in this bank account, and all expenses by all other Implementing Agencies involved are affected from this account.

All other implementation agencies at District level or below will either use the SNA’s account or open a zero-balance subsidiary account, with drawing limits set by the SNA.

Benefits of SNA-

The SNA ensures that allocation of funds to States for the Centrally Sponsored Schemes are made in a timely manner.

Greater efficiency in Centrally Sponsored Scheme’s fund utilization, tracking of funds, pragmatic and just-in-time release of funds to the States; ultimately all contributing to better Cash Management of the Government.

The state can monitor and prioritise releasing new instalments of funds to districts, blocks, and gram panchayats based on their utilisation of the previously allocated funds. 

The ability to see the transaction process end-to-end can improve the efficiency of the delivery mechanism. 

This will lead to faster and timely utilisation of funds on the ground by virtue of which it reduces Time Lag in fund flow to field level agencies.

Since the expenditure on the Centrally Sponsored Scheme is made from a single account now, the submission process for utilisation certificates has become much easier for the states.

It helps in managerial decision making at the highest level

The SNA ensures release of funds to end user and no parking of fund at the intermediary level.