Faulty compulsion: On the issue of MGNREGS and Aadhaar seeding
- The government recently declined to extend the deadline for linking Aadhaar details to job cards for MGNREGS workers beyond December 31, 2023.
- Aadhaar-based payment system (ABPS) has become mandatory, impacting 35% of job card holders and 12.7% of active workers.
Issues with ABPS Implementation
- The government asserts that ABPS ensures quick payments, reduces rejections and prevents leaks.
- The government also contends that the ABPS is a robust and a safer way to transfer wages since 2017.
- However, the over-reliance on technical tools has resulted in problematic implementation, with beneficiaries devoid of a proper recourse for corrections.
- Data analysis by LibTech India
- Discrepancies between the Aadhaar and the job card led to the deletion of 7.6 crore workers' names in the past 21 months
Problems with Aadhaar-Based Payments
- Errors, such as spelling discrepancies between Aadhaar and job cards, incorrect mapping of Aadhaar to bank accounts, result in payment failures.
- Government claims of reduced wage payment delays due to Aadhaar use are disputed, with delays often attributed to insufficient funds.
Concerns and Recommendations
- Mandatory ABPS without addressing faulty Aadhaar seeding and mapping issues could exacerbate problems.
- The Ministry of Rural Development may consider exemptions for gram panchayats facing technical issues.
- However, social audits should be conducted to assess the extent of the problem before insisting on ABPS.
- The government should reconsider the decision and focus on resolving seeding and mapping problems before enforcing ABPS.
Conclusion
- MGNREGS, a crucial demand-driven welfare scheme for rural poor, should not be dependent on a flawed technological system.
- The government should address the technical issues, and ensure a smoother implementation of the ABPS in the interest of beneficiaries.

