The Rise of Aadhar-Based Payments System in MG/RN/KSR/2528

Introduction: The Mahatma Gandhi National Rural Employment Guarantee Scheme (MG/NREGS) is a crucial program aimed at boosting rural job creation through wage distribution. To enhance the efficiency and reliability of this scheme, the Central Government has introduced the Aadhar-Based Payments System (APBS), established from January 2024. This system leverages Aadhaar cards to ensure timely wage payments and address issues like frequent changes in bank account numbers, thereby improving transparency and accountability.

Benefits of APBS:

• Transparency and Accountability: APBS ensures real-time wage distribution across all beneficiaries linked with Aadhar cards, enhancing fairness and reducing discrepancies.
• Data Security and Integrity: Using Aadhaar authentication strengthens data security, minimizing data leakage and corruption risks associated with manual tracking systems.
• Efficient Credit Crediting: APBS facilitates faster credit for wages, making wage redistribution process smoother and more efficient.

Job Card Management: Under the MG/NREGS, job cards must remain linked with Aadhar credentials to prevent non-linking issues. To streamline this process, a Standard Operating Procedure (SOP) was recently issued by the Ministry of Rural Development in January 2025. The SOP outlines clear guidelines for job card deletion and restoration, promoting transparency and protecting workers’ rights through defined conditions.

Progress in Seeding: State/UTs have made significant progress with nearly 100% Aadhaar seeding completed. While many still need a few more days to reach full coverage, the Central Government’s monitoring efforts are focused on achieving this milestone quickly, ensuring faster wage distribution processes for workers and reducing future issues.

Impact on Workers: The implementation of APBS aims to reduce non-updating jobs and data leakage, with plans to ensure that all wage updates are timely and accurate. This initiative is expected to enhance the scheme’s reliability, fostering a more efficient workforce development environment in rural areas.

Conclusion: By introducing the Aadhar-Based Payments System, the Central Government is taking proactive steps to enhance the effectiveness of the MG/NREGS, ensuring better wage distribution, improved transparency, and greater worker satisfaction. This shift reflects a broader strategy towards modernizing social schemes, aligning them with technological advancements for better service delivery in rural settings.