{"id":280144,"date":"2024-01-29T19:04:51","date_gmt":"2024-01-29T13:34:51","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=280144"},"modified":"2024-01-30T13:25:06","modified_gmt":"2024-01-30T07:55:06","slug":"on-aadhaar-based-payment-systems-abps-for-nrega-wage-payments","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/on-aadhaar-based-payment-systems-abps-for-nrega-wage-payments\/","title":{"rendered":"Progress of Aadhaar-Based Payment Systems for NREGA Wage Payments"},"content":{"rendered":"

\"Progress<\/p>\n

Source:<\/strong> This post on Aadhaar-Based Payment Systems (ABPS) for NREGA Wage Payments has been created based on the article \u201cAadhaar-based pay a bad idea for MGNREGS\u201d<\/strong> published in \u201cThe Hindu\u201d<\/strong> on 29th<\/sup> January 2024.<\/p>\n

UPSC Syllabus Topic: <\/strong>GS Paper 2 Governance \u2013 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.<\/p>\n

Progress of Aadhaar-Based Payment Systems for NREGA Wage Payments,<\/strong> The article discusses the issues with using Aadhaar-Based Payment Systems (ABPS) in MGNREGS wage payments.<\/p>\n

Background:<\/strong><\/p>\n

Recently, the Rural Development Ministry made Aadhaar-Based Payment Systems (ABPS)<\/strong><\/a> mandatory in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).<\/p>\n

There are 2 modes of wage payments in MGNREGS: account-based and ABPS. As per the government\u2019s data, out of 25.6 crore registered workers, only 16.9 crore workers are eligible for ABPS while all are eligible for account-based payments.<\/p>\n

How are Payments Made Through ABPS?<\/strong><\/h2>\n

For ABPS, the following procedure needs to be done:<\/p>\n

First<\/strong>, a worker\u2019s Aadhaar number must be linked to their job card. Authentication is successful only when all the details including spelling and gender match.<\/p>\n

Second<\/strong>, Aadhaar must be linked to the bank account.<\/p>\n

Third<\/strong>, the Aadhaar number of each worker must be mapped correctly through their bank branch with a software mapper of the National Payments Corporation of India.<\/p>\n

The Aadhaar number acts as the financial address and cash transferred gets deposited to the last Aadhaar-linked bank account.<\/p>\n\n\n\n\n\n\n
What are the advantages of using ABPS, as claimed by the government?<\/strong><\/td>\nWhat are the issues with these claims?<\/strong><\/td>\n<\/tr>\n
1) Will remove duplicate job cards and lead to savings.<\/td>\nNo publicly available audits on the procedures followed by officials in deleting job cards and the valid scientific assessment of the gains of such an exercise are available.<\/p>\n

Studies show how officials have resorted to deleting job cards owing to pressure from the Union government to meet 100% of the Aadhaar seeding targets. There are also strong evidence of exaggerated savings claims due to Aadhaar.<\/td>\n<\/tr>\n

2) Reduce wage payment delays.<\/td>\nTimely payments is only a function of the government allocating adequate funds. With adequate funds, the time taken to pay workers will not be different whether it uses ABPS or account-based payments.<\/p>\n

The evidence for quicker payments in ABPS compared to account-based payments was not statistically significant (only 3%).<\/td>\n<\/tr>\n

3) Lower payment rejections.<\/td>\nStudy finds no statistically significant difference between the rejection rates in the two modes of payments.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/h2>\n

Want To Read More Topics-<\/strong><\/h2>\n

Myanmar Military Coup and India<\/a><\/p>\n

On the Issues with Climate Change Treaties<\/a><\/p>\n

<\/h2>\n

What are Some Other Issues with Using ABPS in MGNREGS Payments?<\/strong><\/h2>\n
    \n
  1. Lack of Evidence: <\/strong>No credible evidence supporting the decision to shift to ABPS was provided by the government.<\/li>\n
  2. Complex Procedure: <\/strong>Incorrectness in any of the steps for ABPS means that the worker is denied work, does not receive wages, or is not paid in their preferred account.<\/li>\n
  3. Spelling Mismatches:<\/strong> Since different administrative units are involved in creating different documents in rural areas, spelling mismatches are common.<\/li>\n<\/ol>\n

    Hence, according to the authors, the difficulties in resolving problems with ABPS are more than the difficulties in resolving problems with account-based payments and hence, account-based payments are advocated.<\/p>\n

    Question for practice:<\/strong><\/p>\n

    What are the issues with using Aadhaar-Based Payment Systems (ABPS) in MGNREGS wage payments?<\/p>\n","protected":false},"excerpt":{"rendered":"

    Source: This post on Aadhaar-Based Payment Systems (ABPS) for NREGA Wage Payments has been created based on the article \u201cAadhaar-based pay a bad idea for MGNREGS\u201d published in \u201cThe Hindu\u201d on 29th January 2024. UPSC Syllabus Topic: GS Paper 2 Governance \u2013 Government policies and interventions for development in various sectors and issues arising out… Continue reading Progress of Aadhaar-Based Payment Systems for NREGA Wage Payments<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":280242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,162],"tags":[300,212,10498],"class_list":["post-280144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-polity-governance","tag-governance","tag-gs-paper-2","tag-the-hindu","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/Progress-of-Aadhaar-Based-Payment-Systems-for-NREGA-Wage-Payments.webp?fit=1280%2C1000&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/280144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=280144"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/280144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/280242"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=280144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=280144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=280144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}