Key Points
- The Union Rural Development Ministry supports the Aadhaar-Based Payment System (ABPS).
- ABPS is seen as a big change that improves targeting and efficiency.
- Starting January 1, 2024, ABPS will be required for wage payments.
- Between April and September 2024, 84.8 lakh workers were removed from MGNREGS.
- The Ministry reports that 99.3% of active workers can use ABPS.
- Job card checks will continue, despite claims of workers being removed.
Looma News
On October 27, 2024, the Union Rural Development Ministry defended the Aadhaar-Based Payment System (ABPS) for wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The Ministry described ABPS as a “major reform” that improves targeting, boosts efficiency, and reduces payment delays, while also promoting inclusion by preventing leakages.
This response follows a report from Lib Tech, which pointed out a high rate of worker removals from the program. Since January 1, 2024, ABPS has been mandatory, leading to the removal of 84.8 lakh workers from April to September 2024. In contrast, only 45.4 lakh new workers were added, resulting in a net loss of 39.3 lakh workers.
The Ministry explained that ABPS allows direct payment into bank accounts using workers’ Aadhaar numbers, cutting out several steps in the payment process. As of October 26, 2024, the Centre reported that 13.10 crore active workers, or 99.3% of the total, are eligible for ABPS. The Ministry argued against claims that workers’ requests for jobs go unregistered without ABPS accounts, saying that delays are not just because of this requirement.
For workers who are not eligible and are waiting for ABPS registration, the Ministry has urged states and Union Territories to ensure that Aadhaar numbers are linked to the National Payments Corporation of India (NPCI) mapper to enable payments. The Ministry denied any connection between the introduction of ABPS and worker removals, asserting that job card verification is an ongoing task carried out by states and UTs, using Aadhaar numbers to avoid duplicates.
