Aadhaar-Based Payment System (ABPS) in MGNREGA: Enhancing Efficiency and Addressing Concerns

Introduction:

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), launched in 2005, stands as one of the world’s largest work guarantee programs, providing a hundred days of employment each financial year for adult members of rural households. In recent times, the scheme has embraced technological innovations, particularly the Aadhaar-based payment system (ABPS), to enhance transparency and efficiency in its implementation.

Aadhaar-Based Payment System (ABPS):

Under ABPS, workers’ 12-digit Aadhaar numbers are linked with their job cards and bank accounts, using Aadhaar as their financial address. This system, made mandatory from January 1, 2024, provides several benefits:

  1. Easy and Secure Authentication:
    • Aadhaar’s biometric authentication ensures secure transactions, reducing the risk of fraud.
    • Eliminates the need for physical cards or documents for financial transactions.
  2. Convenience:
    • Authentication using Aadhaar and biometrics streamlines the payment process, making it more convenient.
    • Ensures payment to beneficiaries even in case of frequent changes in their bank accounts.
  3. Reduced Leakages in Subsidy Programs:
    • Links Aadhaar to various government subsidy and welfare programs, ensuring benefits reach the intended beneficiaries directly.
  4. Promotion of Digital Payments:
    • Aligns with the government’s push for a less-cash economy, promoting digital transactions and enhancing the country’s digital infrastructure.

Concerns with ABPS Payments:

While ABPS brings numerous benefits, there are concerns that need attention:

  1. Over-Reliance on Technology:
    • Over-reliance on technical tools has led to problematic implementation, leaving beneficiaries without proper recourse for corrections in the system.
  2. Authentication Issues:
    • Instances of difficulties with biometric authentication due to poor connectivity, technical glitches, or errors in the Aadhaar database.
    • Errors in any step of the process result in payment failures.

Government’s Response and Technological Innovations:

The Ministry of Rural Development has responded to concerns and highlighted technological innovations under MGNREGA:

  1. Aadhaar Integration:
    • Continuous Aadhaar seeding for de-duplication and authentication of genuine beneficiaries.
    • 98.31% of active workers’ Aadhaar numbers have been seeded, making them eligible for Aadhaar Payment Bridge System (APBS).
  2. Aadhaar Payment Bridge System (APBS):
    • Uses Aadhaar numbers for electronic government subsidy and benefit transfers.
    • Gram Panchayats facing technical issues can seek exemptions until resolution.
  3. National Electronic Fund Management System (NEFMS):
    • Introduced for direct wage payments to beneficiaries, with over 99% of payments directly credited to bank/post office accounts.
  4. Real-time Monitoring through NMMS:
    • The NMMS app captures real-time attendance, enhancing transparency and enabling citizens to verify worker attendance.
  5. Geotagging of Assets:
    • Utilizes remote sensing technology for geotagging assets, ensuring public scrutiny and accountability.
  6. Job Card Updation:
    • Regular exercises for job card updation/deletion, deleting fake, duplicate, or unnecessary job cards.