Central Sector Scheme

byPaytm Editorial TeamNovember 1, 2025

Meaning

Definition

“Central Sector Scheme” refers to initiatives fully funded and implemented by the Central Government. These schemes address subjects primarily falling under the Union List of the Indian Constitution.

Key Characteristics

They are 100% financed by the Union Government. Planning and execution are directly handled by central ministries or agencies, ensuring uniform implementation across the nation.

Funding and Implementation

Funds are allocated directly from the Union Budget. Implementation involves central agencies, often leveraging digital payment systems like [UPI](https://paytm.com/blog/payments/upi/upi-all-you-need-to-know/) for direct benefit transfers, streamlining the process similar to how a [UPI transaction](https://paytm.com/blog/payments/upi/upi-transaction-features-benefits-maximum-limit/) works.

You May Also Like

InteroperabilityLast Updated: July 10, 2025

Definition Interoperability means that different systems or apps can work together smoothly. In the context of finance, it…

Dynamic QRLast Updated: September 15, 2025

Meaning Dynamic QR is a QR code that changes for every transaction. Unlike a static QR, it contains…

UPI LinkingLast Updated: July 18, 2025

Meaning UPI Linking is the process of connecting your bank account to a UPI-enabled mobile application. It allows…

National Digital Health MissionLast Updated: January 29, 2026

Meaning The National Digital Health Mission (NDHM) is a transformative initiative by the Government of India for healthcare…

Kisan Credit Card (KCC)November 5, 2025

Meaning The Kisan Credit Card is a vital financial tool assisting Indian farmers with timely and flexible credit…