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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)

 

Must Read
NCERT Notes For UPSC UPSC Daily Current Affairs
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Daily Current Affairs Quiz Daily Main Answer Writing
UPSC Mains Previous Year Papers UPSC Test Series 2024

 

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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AVAILABLE FOR DOWNLOAD SOON
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
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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