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Direct cash payment in NREGS to be stopped: Rural Development Minister

Direct cash payment in NREGS to be stopped: Rural Development Minister
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First Published: Mon, May 05 2008. 03 15 PM IST
Updated: Mon, May 05 2008. 03 15 PM IST
PTI
New Delhi: With the CAG finding irregularities in implementation of its flagship National Rural Employment Guarantee Scheme (NREGS), the Government has decided to stop direct cash payment to the beneficiaries and open bank accounts to transfer their wages.
“We will not make payment if the beneficiary does not have a bank account. We have opened 1.45 crore accounts so far. We will cover 3.37 crore beneficiaries very soon,” Union Rural Development Minister Raghuvansh Prasad Singh told PTI on Monday.
The Minister, who was speaking after inaugurating the National Consultation on NREGA, said the move would help check any irregularity in implementation of the programme.
The CAG had stated that the systems for financial management and tracking were deficient in the NREGS.
“In case of direct payment, there is lot of scope for misappropriation. There are even instances of money being paid in the name of dead men,” Singh said.
The Government would also start health insurance and life insurance schemes for the beneficiaries of NREGS, he said.
“Now, we are implementing the scheme in all 600 districts of the country. So the number of beneficiaries would increase to five crore and all of them will be covered under the insurance cover,” Singh said.
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First Published: Mon, May 05 2008. 03 15 PM IST