Indian Economy News

88% wage payment under MNREGS done through Aadhaar Based Payment System in May: Government

In May, the Union Rural Development Ministry reported that 88% of wage payments under the Mahatma Gandhi National Rural Employment Scheme (MGNREGS) were processed using the Aadhaar Based Payment System (ABPS). The ABPS has been in use under the MNREGS since 2017.

The government also stated that Aadhaar has been seeded for 13.75 crore of the total 14.28 crore active beneficiaries. 12.17 crore Aadhaar have been validated against these seeded Aadhaar, and 77.81% are now qualified for ABPS.

Data from the National Payments Corporation of India (NPCI) reveals that when Aadhaar is enabled for Direct Benefit Transfer (DBT), the success rate is 99.55% or higher.

The Rural Development Ministry noted that more than 98% of individuals have an Aadhaar number, according to the Unique Identification Authority (UIA) of India. According to the ministry, states have been asked to organise camps and follow up with beneficiaries under the MGNREGS in order to achieve 100% ABPS.

The ministry stated,” Aadhaar-based payment system is nothing but a route through which the payment is getting credited in the account of beneficiaries. There are well-defined steps adopted in this system and the role of beneficiaries, field functionaries and all other stakeholders is clearly defined”.

The ministry also said that “After almost universal availability of Aadhaar number to every adult population, now the Government of India decided to extend ABPS for beneficiaries under the (employment) scheme. The payment will land through ABPS only to the account associated with ABPS, which means that it is a safer and faster way of payment transfer".

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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