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Context:

A recent report discloses deletion of nearly 3.9 million rural worker accounts under MGNREGS, due to Aadhaar linking issues.

About MGNREGS

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was passed in 2005 to guarantee the right to work for rural citizens.

It provides a legal guarantee for at least 100 days of unskilled manual work every year to one member of every rural household. If the employment isn't provided within 15 days of applying, the government has to pay an unemployment allowance.

It ensures that at least one-third of the jobs created are reserved for women. This helps promote gender equality and provides women with opportunities to earn their own income.

The gram panchayats are responsible for implementing MGNREGA. They register households, issue job cards, and oversee the work done under this program.

Work must be provided within 5 kilometers of the workers' homes, reducing travel time and costs. The involvement of contractors is prohibited, to ensure that the benefits go directly to the workers without any middlemen.

About Aadhaar-Based Payment System

The Indian government has made the Aadhaar-based payment system (ABPS) mandatory from January 2023 for paying wages to workers under the MGNREGS; workers must link their Aadhaar numbers with their job cards and bank accounts to receive their wages directly.

It is a digital payment method that allows people to access banking services using their 12-digit Aadhaar number and biometric data (like fingerprints or iris scans). This system was created by the National Payments Corporation of India (NPCI) to help people to access financial services and encourage digital transactions.

Recent Report

A report by LibTech indicates that nearly 3.9 million payment accounts for rural workers under MGNREGS have been deleted due to issues with Aadhaar linking. This has delayed the payments for around 67 million workers, who haven’t received any compensation for their work since April 2024.

Key Findings from the Report

From April to October 10, 2024, about 8.5 million accounts were removed from the MGNREGS system, resulting in a net loss of 3.9 million active accounts. This represents an 8% decrease in the total number of active workers.

A study in Andhra Pradesh by LibTech suggests that approximately 15% of the account deletions may have been incorrect. Many authentic workers were wrongfully removed from the system, raising concerns about the fairness of the process.

Currently, about 27.4% of all MGNREGS workers are ineligible for the Aadhaar-Based Payment System (ABPS). This has made it harder for them to receive their due payments.

The report also shows a decline in employment opportunities under MGNREGS. The total number of person-days worked decreased from 184 crore to 154 crore, a drop of 16.6%. States like Tamil Nadu and Odisha saw significant declines in employment, while Maharashtra and Himachal Pradesh experienced increases.

Assam has the highest percentage of ineligible workers, at 22%, while Maharashtra leads in total ineligibility with 66.3%. Assam and West Bengal are the only states with more than 10% of their active workers considered ineligible for ABPS.

Way Forward

The findings from the report highlight a serious situation for rural workers relying on MGNREGS. Many workers are missing out on their right to work and receive fair wages due to bureaucratic hurdles related to Aadhaar linking. LibTech’s observations highlight the need for the government to better align its documentation requirements with the reality faced by these workers.

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Source:

PRACTICE QUESTION

Q.Ajay a rural labourer was unable to receive his MGNREGA payments due to Aadhaar linking complications. He claims to have completed his work, but his account was deactivated since he had been declared ineligible.

What could be the explanation behind Ajay's problem?

1. His Aadhaar card does not correspond to his employment card.

2. His bank account is not Aadhaar-linked.

3. He failed to complete the minimum number of work days.

Select the correct answer using the codes given below:

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2 and 3

Answer: A

Explanation:

Ajay's inability to get payment could be related to both his Aadhaar number not being linked to his employment card and his bank account not being Aadhaar-linked.