Aadhaar-based payment compulsory for NREGA workers: Govt (2024)

The government might consider exemptions on a case-to-case basis.

January 3, 2024:Even though the Aadhaar-Based Payment System (ABPS) has become mandatory for payment under the National Rural Employment Guarantee Scheme (Nrega) from January 1, the government might consider exemption on a case-to-case basis. According to a statement issued by the Ministry of Rural Development, the exemption would only be allowed for gram panchayats facing “technical problem” or “Aadhaar-related” issues “till the resolution of the issue”.

See also: What is NREGA Aadhaar-based payment system?

According to the National Payments Corporation of India (NPCI), ABPS is “a unique payment system which uses Aadhaar number as a central key for electronically channelising government subsidies and benefits in the Aadhaar-Enabled Bank Accounts (AEBA) of the beneficiaries”. To opt for the ABPS, a NREGA job Card holder must link his bank account with Aadhaar. The same account must also be connected to the National Payments Corporation of India (NPCI) mapper.

“It has been noticed by the ministry that some section of the newspapers has quoted that “government should stop weaponising technology, especially Aadhaar to deny the most vulnerable Indians their social welfare benefits, release delay wage payment and implement open muster roll and social audits to improve transparency,” the ministry said in a statement.

Explaining the rationale behind the introduction of the new payment system, the ministry said that the payment success rate percentage is higher in case of the ABPS when compared to account-based payments. Citing NPCI data, the ministry said that the payment success rate percentage was 99.55% or above where the Aadhaar is enabled for the direct benefits transfer while is was about 98% for account-based payments.

“In a working paper released by a Public Research and Advocacy group-LibTech, it has been claimed by some of the researchers that there is no significant gain with ABPS vis-à-vis bank account payments and it is just 3% more in case of ABPS. It needs further clarification that keeping the scale of the Mahatma Gandhi NREGS in view, this 3% gain is also a very significant gain. This research by Lib tech endorsed that the ABPS process is resulting in the favour of better implementation leading to a greater transparency,” it added.

The use of different technologies, ranging from space technology/remote sensing to IT-enabled technology, has brought a transformation in the implementation of the scheme, it said. “Aadhaar seeding of beneficiary is a continuous process and is done as a de-duplication exercise to authenticate the genuine beneficiaries to make the benefits of the social welfare schemes available only to the genuine beneficiaries,” the ministry said in the statement.

“Under the scheme, now with the help of the National Mobile Monitoring System (NMMS) app, the real time attendance of the beneficiaries working at a worksite is being captured and beneficiaries as well as any citizen can check the genuiness of the workers. Similarly, geotagging of assets using remote sensing technology is ensuring the availability of assets for public scrutiny. The National Electronic Fund Management System started in FY 2016-17 to provide wage payment directly into the account of beneficiaries. Currently, more than 99% wage payments are being made directly into the accounts of beneficiaries,” it said.

The ministry also revealed that the total number of registered job cards is 14.32 crore. Of this, 9.77 crore (68.22%) is active job cards. There is a total of 25.25 crore workers, of which just 14.32 crore (56.83%) are active workers. Out of the total 14.32 crore active workers, Aadhaar seeding of 14.08 crore (98.31%) active workers have already been completed. Against these seeded Aadhaar, a total 13.76 crore Aadhaar have been authenticated and 87.52% active workers are now eligible for the APBS.

While stating that since April 2022, about 2.85 crore Nrega job cards have been deleted by states across India, this has no connection with the introduction of the ABPS.

“Job card of household can be deleted only in certain specific conditions, but not due to the ABPS. Updating/deletion of job cards is a regular exercise conducted by states. A job card can be deleted in case, it is a fake job card (incorrect job card)/ duplicate job card/ household not willing to work/ family shifted from Gram Panchayat permanently/ single person in job card and that person is expired.”

Stating that the payment for a beneficiary who turns up for wage employment has to be made through APBS, the ministry trashed the claim in the report that 34.8% of total registered workers and 12.7% of active workers were ineligible for the ABPS. “The APBS is applicable only in case a registered beneficiary turns ups for wage employment. The government of India has decided to make the wage payment of unskilled workers through APBS to ensure the payment of beneficiaries into their bank accounts, even in case of frequent change of bank account by the beneficiary.”

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