The National Means cum Merit Scholarship scheme, also known as NMMS Exam, was started in May 2008. The NMMS Exam is sponsored by the Central Government. The examination is conducted by the local authority. To prevent the dropping out of economically backward students from school at class VIII and to encourage them to complete their education till the secondary stage, the exam seeks to identify meritorious students and fund their education expenses. There is reservation as per Government norms

Scholarships are paid from Class IX to Class XII.

A total annual amount of Rs. 12000 is paid to 100,000 students across the country

Students enrolled in government-aided or local body-run schools belonging to families whose annual income is less than Rs.3,50,000 from all the sources combined are eligible for receiving the scholarship. Students have to take up studies in approved courses in the government/aided/local body-run schools. They have to maintain good conduct, as certified by the Head of the institution. They have to be full-time students. Leaves should be taken via a proper manner and should not absent themselves otherwise. They should not be employed. The eligibility for receiving the scholarship is that the students selected for NMMS need to get clear promotions from Class VIII to Class IX.

• Each state and UT have a fixed quota of scholarships, which are determined on the basis of the population of children of the age group of class VII and class VIII, and children enrolled in class VII and class VIII.
• Scholarships are valid for studying courses in India for a period of four years maximum.
• No scholarships for pursuing studies outside India.
• No scholarships will be paid if the student leaves the course within one month of registration/admission.
• After the passage of 12 months of the academic year for which the claim has been made, no claims can be made for due arrears of the scholarship.
• No scholarships for diploma courses.
• Students from Kendriya Vidyalaya and Jawahar Vavodaya Vidyalaya are not eligible for the scholarship. Students studying in non-recognized schools will not be eligible for the scholarship as well.
• At the time of selection for the award of scholarship the student must have scored at least 55% mark or equivalent grade in Class VIII examination. There will be 5 % relaxation for SC/ST students.
• Candidates should clear the Class IX examination and Class XI examination with 55% marks to be eligible to receive scholarships for Class X and Class XII. This is relaxed by 5 % for SC/ST candidates.
• Candidates should clear Class X examinations with 60% marks to be eligible for continuing scholarship in class XI.
• If the student falls ill and is unable to attend the final examination, they should submit a medical certificate from a Registered Medical Practitioner to the Head of the Institution, certifying the duration of the illness. The student would be considered eligible for the scholarship if the attendance is over 50% for the year in aggregate./li>
• • If a school does not have the examination at the end of class IX or Class XI, the scholarship will be disbursed after submission of a written declaration by the Head of the Institution certifying the same./li>

The State level Examination would consist of two tests:

• Mental Aptitude Test. (MAT)
• Scholastic Aptitude Test. (SAT)

The mental Aptitude Test consists of 90 multiple choice questions testing verbal and nonverbal meta-cognitive abilities like reasoning and critical thinking. The topics are analogy, classification, numerical series, pattern perception and hidden figures. Scholastic Aptitude Test consists of 90 multiple choice questions spanning subjects namely science, social studies and mathematics based on the curriculum of Class VII and VIII The test is of 90-minute duration. Children with a disability will be given extra time. Students must pass both MAT and SAT tests with at least 40% marks and 32% for reserved categories. Successful candidates on intimation of reception of scholarship have to open a bank account jointly with a parent. The candidate must open an account with a Public-Sector Bank which has an Electronic Clearing System facility in case SBI does not have a branch in the area. SBI will transfer the scholarship to this account quarterly a year.

Online Application forms are available to schools on the websites of respective governments. School authorities should fill out online forms and printouts of all the online forms along with attested copies of caste, income and disability certificates, with signatures by the parent, student and head of the institution and relevant authorities, and forms signed by the head of the institution and SBI challan paying the exam fees should be submitted to the respective Education Officer/ Educational Inspectors on or before last date.