This paper assesses the effects of the Muthulakshmi Reddy Maternity Benefit Scheme (MRMBS), a conditional cash transfer programme targeted towards pregnant women in Tamil Nadu, India. Using the National Family Health Survey data from 2005-06 and 2015-16, we estimate the impact on health-seeking behaviour and nutritional outcomes among children. Exploiting the exogenous timing of a substantial increase in the programme’s financial assistance along with birth order and state of residence, we employ triple difference regression framework to estimate the effects. We find significant improvements in health-seeking behaviours stated as pre-condition of receiving MRMBS transfers, like pregnancy registration, institutional delivery and immunisation. We also observe an improvement in indicators not linked with the programme such as antenatal check-ups, tetanus shots and iron tablets intake by pregnant mothers and immediate breastfeeding after birth. However, the programme failed to improve health outcomes like stunting, wasting and underweight. To investigate the lack of gains, we examine how the cash transfers were likely spent. While we did not observe higher consumption in temptation goods or assets, there is suggestive evidence of increased investments in toilets. Despite these improvements, health outcomes remained unchanged possibly due to no improvement in children’s dietary quality and engagement with health workers.