A Parliamentary Panel has suggested that the Rural Development Ministry should not make the Aadhaar Based Payment Bridge System (ABPS) mandatory for payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). This recommendation was made in a report presented in the Lok Sabha on Tuesday. The committee believes that there should always be alternative payment methods available so that workers can still receive their wages, even if technology like ABPS faces issues.
The panel criticized the government for low wages under MGNREGS and recommended using a better system that considers inflation when paying wages. They pointed out that since ABPS became mandatory on January 1, 2024, many workers were left out because of problems with linking their Aadhaar numbers, meaning they couldn’t receive their payments. Because of this, the committee strongly urged that ABPS should not be the only option for payments.
Moreover, the committee noted that wages under MGNREGS have not kept up with rising costs. Since many poor rural families rely on MGNREGS for their livelihood, the low wages can discourage them from working, forcing them to move to other areas for better-paying jobs. The committee also mentioned that the method used to set wages is outdated, based on a model from 2009-2010, and needs to be revised.
Despite the smartphone and internet-based attendance tracking using the National Mobile Monitoring System (NMMS) app, many workers struggle with attendance due to a lack of smartphones and poor internet connectivity, which delays their payments. The panel acknowledged that while the app is meant to fix irregularities, it still needs improvement.
The committee also noted that workers want an increase in guaranteed workdays from 100 to 150. MGNREGS has been a lifeline for many during the COVID pandemic, and while state governments can provide more working days, a mandatory increase should come from the Department of Rural Development to ensure it applies nationwide.
Panel Urges Changes to MGNREGS Payment System and Wage Rates
Parliamentary Panel recommends no mandatory use of ABPS for MGNREGS payments, highlighting issues with Aadhaar and low wages affecting rural workers’ livelihoods.
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