Background In India, the poor are increasingly forced to live in highly populated urban dwellings with inadequate living conditions including deficient service provision. This in turn affects their food security and negatively influences their health. In December 2012, Dilli Annashree Yojna (DAS), an unconditional cash transfer scheme was launched for the urban poor in Delhi to address food security and, ultimately, nutrition and health. Our study attempts to explore DAS for new elements like unconditionality and transfer to female head of family, use of benefits, operational issues and perceptions on its influence on health.