The Union Rural Development Ministry has recently announced an extension of the deadline for mandatory payments of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) via the Aadhaar-based Payments System (ABPS) to August 31.
Status of Aadhaar Integration:
According to recent data released by the Ministry, out of the total 14.28 crore active beneficiaries, Aadhaar has been linked for 13.75 crore individuals. Out of this number, 12.17 crore Aadhaar numbers have been successfully authenticated, and 77.81% are already eligible for ABPS. These figures highlight the progress made in linking Aadhaar with MGNREGS beneficiaries.
Challenges with ABPS Implementation:
The increasing pressure to utilize ABPS for MGNREGS payments has led to a high deletion rate of job cards. Mismatches between Aadhaar and job card data have resulted in the exclusion of beneficiaries. Reliance on ABPS as the primary payment system has created challenges in ensuring accurate data integration and eligibility verification.
Two Modes of Wage Payments:
Previously, the NREGA payment system allowed for two modes of wage payments: account-based and Aadhaar-based. Account-based payments involved plain bank transfers, while Aadhaar-based payments utilized Aadhaar as a financial address, sending money to the beneficiary’s “last Aadhaar-linked account.”
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS):
MGNREGS, launched in 2005 by the Ministry of Rural Development, is one of the largest work guarantee programs in the world. Its primary objective is to provide 100 days of employment in a financial year to adult members of rural households willing to engage in unskilled manual work. Currently, there are 15.4 crore active workers under the MGNREGS.
Aadhaar-Based Payment System (ABPS):
Introduced in 2017, ABPS utilizes the Aadhaar number of the recipient to identify them for the purpose of transferring funds. This system promotes transparency in wage payments and prevents unauthorized access. It also helps avoid disruptions in workers’ wage payments caused by issues with their bank accounts.
Complexities and Need for Improvements:
The complexities associated with ABPS implementation highlight the need for careful consideration and improvements in the payment system. While ABPS promotes transparency and safeguards against unauthorized access, the challenges related to accurate data integration and eligibility verification must be addressed to ensure seamless and inclusive implementation of MGNREGS.
