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Aadhaar Based Payment System For MGNREGS Workers

Aadhaar Based Payment System For MGNREGS Workers

Context: 

This editorial is based on the news “Aadhaar-based pay a bad idea for MGNREGSwhich was published in the Hindu. On January 1, the Rural Development Ministry made Aadhaar-Based Payment Systems (ABPS) mandatory in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

Relevancy for Prelims: MGNREGS, Account-Based Payments, Aadhaar-Based Payment Systems (ABPS), Aadhar Card, Aadhar Data, and National Payments Corporation.

Relevancy for Mains: Aadhaar-Based Payment Systems (ABPS)- Need, Significance, Challenges and Way Forward.

Adoption of Aadhaar Based Payment System For MGNREGS Workers

  • Aadhaar Seeding Targets: Officials deleting job cards owing to pressure from the Union government to meet 100% of the Aadhaar seeding targets.
  • Modes of Wage Payments in MGNREGS: The MGNREGS has two modes of wage payments: 
    • Account-Based Payments: Wage transfers using workers’ name, bank account number, and IFSC code.
    • Aadhaar Based Payment: Aadhaar number seeding, linking to bank account, and mapping through the National Payments Corporation.

Challenges of Aadhaar Based Payment System on Workers

  • Livelihood Difficulties: Issues with incorrect authentication and mapping in Aadhaar-based payment systems cause financial and livelihood difficulties for workers.
  • Denied Work: Incorrectness in Aadhaar Based Payment System means workers are denied work or wages.
  • Financial Strain: Workers lose money and days of livelihood to fix technological glitches.
  • Audits and Deletions in Job Cards: Publicly available audits on job card deletions and the gains of the Aadhaar seeding targets are contentious.
    • Lack of available audits on job card deletions.

Concerns with Ministry’s Justification for Aadhaar Based Payment System

  • Lack of Credible Evidence: The Ministry’s justification for making Aadhaar Based Payment System mandatory in MGNREGS lacks credible evidence.
    • Evidence by LibTech: No credible evidence supporting the decision provided, despite the reference to LibTech’s working paper.
    • Misrepresentation of Paper Endorsement: The Ministry misrepresents the findings of the paper, incorrectly claiming an endorsement of ABPS.
  • Evaluating Claims of Aadhaar Based Payment System: The government’s claims of the benefits of Aadhaar Based Payment System in MGNREGS are refuted by recent research.
    • Exaggerated Claims: Evidence suggesting exaggerated savings claims due to Aadhaar.
    • Delete Duplicates: Challenges in assessing and removing duplicate job cards.
    • Questionable Efficiency: No statistically significant difference in efficiency between ABPS and account-based payments.
  • Aadhaar Based Payment System vs. Account-Based Payments: Difficulties in resolving problems with Aadhaar Based Payment System  outweigh those with account-based payments.

Way Forward 

  • Role of Adequate Funds: The timely payments are primarily a function of the government allocating adequate funds.
  • Efficiency and Timeliness: Efficiency and timeliness are a function of adequate funds allocation.
  • Discussion with Stakeholders: All associated stakeholders should be connected by the government to come out with mutually accepted decisions that will lead to positive outcomes.
Mains Question: Examine whether the Aadhaar Payment Bridge System (APBS) has been disadvantageous or problematic for marginalized and vulnerable groups in society. (15 Marks, 250 words)

 

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Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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