It is one of the welfare schemes of the Ministry of Tribal Affairs. Under the scheme, a one time supply of foodgrains is provided to each Grain Bank at the rate of one quintal per family. Normally a Grain Bank in a village stores 10 MT of foodgrain from which villagers can borrow in times of calamity and then repay after harvest or after receiving wages. Allocation of foodgrains was made for the first time during 2002-03 under the scheme.

The objective of the scheme is to provide safeguard against starvation during the period of natural calamity or during the lean season when the rural people do not have the purchasing power. The targeted beneficiaries are people living below poverty line.