The implementation of the Aadhaar Based Payment System (ABPS) has become a focal point for discussions surrounding the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2024. The Union Rural Development Ministry has defended its mandatory use, citing enhanced efficiency, reduced delays, and improved targeting of benefits. However, concerns have emerged regarding an important net deletion of enrolled workers, raising questions about the system’s inclusivity and effectiveness.
Aadhaar Based Payment System Explained
The ABPS is designed to streamline the payment process for wage beneficiaries under MGNREGS by linking their payments directly to their Aadhaar numbers. This system aims to eliminate intermediaries, thereby reducing the risk of corruption and ensuring that funds reach the intended recipients promptly. The system’s architecture relies on the National Payments Corporation of India (NPCI) to facilitate these transactions.
Impact on MGNREGS Workers
The introduction of ABPS has led to a notable shift in the landscape of MGNREGS. Between April and September 2024, a staggering 84.8 lakh workers were removed from the scheme, while only 45.4 lakh new workers were added. This has resulted in a net loss of 39.3 lakh workers. The Ministry insists that this reduction is not directly linked to the implementation of ABPS but rather a part of ongoing job card verification processes aimed at ensuring the authenticity of beneficiaries.
Concerns Over Worker Deletions
Critics argue that the mandatory nature of ABPS has inadvertently excluded many eligible workers from the scheme. The deletion of workers has raised alarms among activists and academics, who assert that the government’s insistence on linking Aadhaar to wage payments has created barriers for those unable to comply. The Ministry has countered this by stating that the majority of active workers—over 99%—are eligible for ABPS, suggesting that the system is functioning as intended.
Efficiency vs. Inclusion
While the Ministry promotes ABPS as a tool for better targeting and efficiency, the reality on the ground indicates a potential trade-off between these benefits and the inclusivity of the programme. The high deletion rates challenge the narrative of enhanced inclusion, as many vulnerable workers may find themselves disenfranchised due to bureaucratic hurdles. Furthermore, the reliance on technology raises questions about accessibility for populations with limited digital literacy or infrastructure.
Future of MGNREGS and ABPS
The future trajectory of MGNREGS amid the ABPS implementation will depend on the government’s ability to balance efficiency with inclusivity. Continuous monitoring and adjustments to the system will be essential to ensure that the intended beneficiaries are not left behind. Additionally, enhancing awareness and training for local banking institutions could mitigate some of the barriers faced by workers.
Questions for UPSC:
- Discuss the implications of the Aadhaar Based Payment System on rural employment in India.
- Evaluate the effectiveness of MGNREGS in the context of recent changes in payment systems.
- What are the potential risks associated with linking welfare schemes to biometric identification?
- Analyse the role of technology in enhancing or hindering social welfare programmes.
- How can the government address the concerns raised by the deletion of workers from MGNREGS?
