Table of Contents
THE CONTEXT: Aadhaar-Based Payment Systems (ABPS) are now mandatory for wage payments under MGNREGS. However, the transition has faced criticism due to practical difficulties for workers. Accurate seeding of Aadhaar numbers is essential, and any errors can lead to the denial of wage payments.
THE ISSUES:
- Technical Challenges: Implementation of ABPS requires accurate Aadhaar seeding with job cards and bank accounts, which has proved problematic due to data mismatches, causing delays and errors in wage payments.
- Data Mismatches: Common spelling mismatches and demographic detail errors can complicate the seeding process, resulting in the deletion of job cards. In the last two years alone, job cards of over seven crore workers got deleted.
- Deletion of Job Cards: Reports suggest an alarming increase in job card deletions by 247 % in FY 2022-23, compared to previous years, fuelled by pressures to meet Aadhaar seeding targets by 100%.
- Questionable Efficiency Gains: Research findings indicate that the claimed advantages of the ABPS over traditional bank account payments, such as faster wage disbursal and lower rejection rates, are not statistically significant. Rural Development Ministry’s claims of ‘gains’ are based on Libtech’s study of a sample of 3.2 crore transactions. It is observed that ABPS is quicker than an account-based payment system by only 3%.
- Accessibility Issues and Exclusion Concerns: The mandatory nature of the ABPS may exclude a significant number of workers who cannot link their Aadhaar correctly for various reasons, leading to a loss of livelihood. Out of 25.6 crore registered workers, only 16.9 crore workers are eligible for ABPS, while all workers are eligible for account-based payments.
THE WAY FORWARD:
- Independent Audits: Conducting independent audits and reviews of the Aadhaar seeding process and payment efficiency claims can ensure transparency and accountability.
- Corrective Measures: Implement immediate corrective measures for those affected by job card deletions and ensure no worker is deprived of their right to work or wages.
- Policy Evaluation: The government should consider the impact assessments and seek further evidence on the efficiency and reliability of ABPS.
- Hybrid Payment Models: The government could facilitate ABPS and traditional bank account-based payments, thus accommodating discrepancies and preventing exclusion.
- Grievance Redressal: A robust grievance redressal mechanism is essential to address the issues workers face due to the transition to ABPS and efficiently resolve disputes related to wage payments.
- Capacity Building: Training on ABPS for workers and local officials to reduce errors and enhance system understanding would be beneficial.
- Empirical Assessment: An independent and thorough assessment of the ABPS, including its impact on wage disbursal times and the deletion of job cards, is necessary to validate the system’s effectiveness and fairness.
- Improvement in Data Accuracy: Steps should be taken to improve the accuracy of data entry at various administrative levels, minimizing discrepancies in demographic details.
- Awareness and Support: Increasing awareness among workers about the Aadhaar linkage process and providing support to complete these formalities can reduce exclusion errors.
THE CONCLUSION:
Prioritize equity and practical realities of rural administrative systems. Payment systems should not add bureaucratic burdens on workers. A balanced approach that allows both Aadhaar-linked and traditional banking payment systems may provide the most equitable solution, ensuring timely wages and the broadest access to MGNREGS benefits. Let’s harness the power of technology to aid the welfare of rural workers.
UPSC PAST YEAR QUESTIONS:
Q. Reforming the government delivery system through the Direct Benefit Transfer Scheme is a progressive step, but it has its limitations too. Comment (2022)
Q. Performance of welfare schemes that are implemented for vulnerable sections is not so effective due to absence of their awareness and active involvement at all stages of policy process – Discuss. (2022)
Q. Two parallel run schemes of the Government viz. the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and litigations. On merits, discuss whether both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth. (2014)
MAINS PRACTICE QUESTION:
Q. Examine the effectiveness of Aadhaar-Based Payment Systems (ABPS) for disbursing wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Suggest measures to enhance the inclusivity and reliability of wage payments in MGNREGS.
SOURCE:
https://www.thehindu.com/opinion/op-ed/aadhaar-based-pay-a-bad-idea-for-mgnregs/article67786940.ece
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