Soon after assuming charge of the office, PM Narendra today decided to introduce some changes to the 'Prime Minister's Scholarship Scheme' under the National Defence Fund. It has now been decided to increase the rates of scholarship from Rs. 2000 per month to Rs. 2500 per month for boys and from Rs. 2250 per month to Rs. 3000 per month for girls. The ambit of the Scholarship Scheme has been extended to the wards of state police officials who are/were martyred during terror/naxal attacks. The quota of new scholarships for the wards of state police officials will be 500 in a year. A PMO release said, "In line with the Prime Minister’s vision for India’s safety, security and the well-being of those who protect the nation, the very first decision of the Prime Minister Shri Narendra Modi on assuming his office is approval to a major change in the ‘Prime Minister’s Scholarship Scheme’ under the National Defence Fund." 

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Prime Minister’s Scholarship Scheme was introduced from the Academic year 2006-07. The scheme was introduced to encourage higher technical and professional education for the dependent wards and widows of Ex Servicemen/Ex Coast Guard personnel (below officer rank only). 

The new points in the scholarship scheme are:

1. The rates of scholarship have been increased from Rs. 2000 per month to Rs. 2500 per month for boys and from Rs. 2250 per month to Rs. 3000 per month for girls.
2. The ambit of the Scholarship Scheme is extended to the wards of State Police officials who are/were martyred during terror/naxal attacks. The quota of new scholarships for wards of state police officials will be 500 in a year. The Ministry of Home Affairs will be the nodal Ministry in this regard.

The pmindia.gov.in website says the scholarship scheme is "to encourage technical and post graduation education for the widows and wards of the deceased personnel of Armed Forces and Para Military Forces is being implemented. The scheme is being implemented by the Department of Ex-Servicemen Welfare, Ministry of Defence in respect of armed forces. In so far as personnel of paramilitary forces and Railway Protection force are concerned, the scheme is being implemented by Ministry of Home Affairs and Ministry of Railways respectively."

The National Defence Fund (NDF) was set up in 1962 to take charge of the voluntary donations in cash and kind received for promotion of the national defence effort, and to decide on their utilisation. Currently the fund is being used for the welfare of the members of the Armed Forces, Para Military forces and Railway Protection Force, and their dependents. The fund is administered by an Executive Committee with the Prime Minister as the Chairperson and the Defence, Finance and Home Ministers as Members.

Under National Defence Fund major scheme of ‘Prime Minister’s Scholarship Scheme (PMSS)’ is being implemented to encourage technical and post-graduate education for the widows and wards of the deceased/ex-service personnel of Armed Forces and Para Military Forces and Railway Protection Force. Scholarships are available for education at technical institutions (medical, dental, veterinary, engineering, MBA, MCA and other equivalent technical professions with suitable AICTE/UGC approval).

Under the PMSS, every year new scholarships are given for 5500 wards of armed forces controlled by Ministry of Defence, for 2000 wards of paramilitary forces controlled by Ministry of Home Affairs and for 150 wards of forces controlled by Ministry of Railways.