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Now, rural job plan payment at doorstep

Now, MGNREGA payments will be made at the doorstep.

delhi Updated: Aug 05, 2011 00:05 IST
HT Correspondent

Now, MGNREGA payments will be made at the doorstep.

To tackle the problem of delayed payments, which are cutting out the dividends of the Rs 40, 000 crore right to work programme, the ministry of rural development has initiated the business correspondents model.

Though payments are being made through either post offices or banks in many states, their services are not in tally with the crores of rural household accounts operating under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Though the Act says payments should be made within 15 days of the work, in many places, it stretches into weeks and even months.

According to the model, the banks selected for the purpose by the state governments will employ business correspondents who equipped with a biometric device will go to the villages disbursing the wages at the doorstep.

The states are allowed to pay the banks R80 per annum per every operative MGNREGA account as service charges, which could be absorbed in the 6% administrative expenses admissible under MGNREGA.

“Number of individuals claiming (financial) inclusion under MGNREGA has increased exponentially over the last few years but the banks and post offices have not grown in same proportion. We have decided to introduce the bank correspondents model which would not only address the delay in payments but also brings in transparency in the system,” rural development minister Jairam Ramesh said.