From January 1, 2024, all wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme must be paid through an Aadhaar-based payment system (ABPS).
Key points
- Under Mahatma Gandhi NREGS, APBS is in use since 2017. After almost universal availability of Aadhaar number to every adult population, Government of India decided to extend APBS for beneficiaries under the scheme.
- The first order to enforce ABPS was issued on January 30, 2023, followed by extensions till February 1, March 31, June 30, August 31, and finally December 31.
- ABPS uses the worker’s unique 12-digit Aadhaar number as their financial address.
- To be paid under ABPS, a worker’s Aadhaar details must be seeded to her job card; her Aadhaar details must be seeded to her bank account; her Aadhaar must be mapped with the National Payments Corporation of India (NCPI) database; and finally, the bank’s institutional identification number must itself be mapped with the NPCI database.
- According to the government, ABPS implementation will plug leaks, ensure speedy payments, and reduce rejection.
- Active workers under MGNREGA are those who have worked for at least one day over the last three financial years.
- Mahatma Gandhi NREGA is a demand driven Scheme and is affected by various economic factors.
