Aadhaar-Based Payment System Enhances Transparency In Mahatma Gandhi NREGS

The Government of India has taken a significant step towards improving the efficiency and transparency of wage distribution under the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) by implementing the Aadhaar Payment Bridge System (APBS). 

Effective from 1 January 2024, this system aims to address payment delays caused by frequent changes in beneficiaries’ bank accounts and non-updation of details, ensuring timely and accurate wage transfers.

Aadhaar-Based Payment System Implementation

The APBS was introduced to streamline wage payments, eliminate duplication, and ensure that funds reach only genuine beneficiaries with verified identities. By linking Aadhaar numbers directly to bank accounts, the system enables faster credit of wages and reduces the risk of errors and fraudulent activities.

Ensuring Timely Wage Distribution

With APBS in place, wage payments are directly credited to beneficiaries’ accounts linked with Aadhaar, significantly cutting down the processing time. In case of payment failures through APBS, an alternative route is available via the National Automated Clearing House, ensuring no worker is left unpaid due to technical issues.

Current Progress And Aadhaar Seeding

Out of 12.12 crore active workers under the scheme, Aadhaar seeding has been completed for 99.65% of them. The central government is continuously monitoring the States and Union Territories to achieve 100% Aadhaar seeding and APBS conversion through the NREGASoft platform. Issues raised by States, UTs, or other stakeholders are addressed on a priority basis.

Continuous Monitoring And Evaluation

The Ministry conducts regular reviews of the scheme’s implementation through mechanisms such as Mid-Term Reviews, Common Review Missions, Labour Budget meetings, national-level monitoring, virtual conferences, and field visits. These evaluations help identify bottlenecks and ensure timely course corrections, further strengthening the scheme’s efficiency and effectiveness.

Read More: Income Tax Bill 2025: No Penalty on Late TDS Filing Under the New Income Tax (No 2) Bill! 

Conclusion 

The integration of APBS into the Mahatma Gandhi NREGS framework reflects the government’s commitment to transparent governance. Aadhaar authentication acts as a safeguard against leakages, ensuring that every rupee reaches its rightful recipient and wage payments are made in a fair and accountable manner.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.