About 88% of wages paid via Aadhaar-based payment system till May: Govt
ABPS has been found to be the most suitable route for wage payment through the Direct Benefit Transfer system, ensuring timely and seamless payment disbursement to beneficiaries.
PremiumNew Delhi: The Ministry of Rural Development on Saturday said that approximately 88% of wage payments have been made through the Aadhaar based payment system (ABPS) until May 2023.
According to the ministry, it has come to the attention of the central government that numerous wage payment transactions are being rejected by destination bank branches due to non-updating of new account numbers by concerned programme officers, as beneficiaries frequently change their bank account numbers without timely submission of the updated details. To mitigate these issues, ABPS has been found to be the most suitable route for wage payment through the Direct Benefit Transfer (DBT) system, ensuring timely and seamless payment disbursement to beneficiaries.
“Once Aadhar is updated in the scheme database, beneficiary need not update account numbers due to change in location or change in bank account number. Money will be transferred to the account number which is linked with Aadhar number. In case of more than one account of the beneficiary, which is rare in the context of MGNREGA, beneficiary has the choice to select the account," it said.
According to data from the National Payments Corporation of India (NPCI), the success rate of Aadhaar-enabled DBT stands at 99.55% or above. In comparison, the success rate for account-based payment is approximately 98%.
ABPS has been in use under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) since 2017. With the near-universal availability of Aadhaar numbers among the adult population, the Centre has decided to extend the use of ABPS to all beneficiaries under the scheme. Payments will now be exclusively channeled through ABPS, ensuring a safer and faster transfer method.
Out of a total of 14.28 crore active beneficiaries, 13.75 crore beneficiaries have successfully linked their Aadhaar numbers. Among these seeded Aadhaar numbers, 12.17 crore have been authenticated, making 77.81% of beneficiaries eligible for ABPS. In May 2023 alone, approximately 88% of wage payments were made through ABPS.
The Unique Identification Authority of India (UIDAI) reports that over 98% of the adult population possesses an Aadhaar number. Individuals who require an Aadhaar number can obtain one by visiting the appropriate agency or a nearby Aadhaar center.
State governments have been urged to organize camps and actively engage with beneficiaries to achieve 100% ABPS coverage. The ministry has made it clear to all states that beneficiaries who come for work should be requested to provide their Aadhaar numbers, but refusal of work should not be based on this requirement.
The eligibility for ABPS does not affect the demand for work if a beneficiary does not explicitly request it. Furthermore, job cards cannot be deleted on the grounds of a worker’s ineligibility for ABPS.
The Mahatma Gandhi National Rural Employment Guarantee Scheme operates as a demand-driven scheme, influenced by various economic factors. The ecosystem for ABPS is well-established, and considering its benefits for beneficiaries, it is deemed the most effective payment system to be followed.
The Aadhaar-based payment system serves as a secure route for crediting payments into the accounts of beneficiaries. The system has well-defined steps and clearly defined roles for beneficiaries, field functionaries, and all other stakeholders.
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