Skip to main content

Government starts mega drive to link NREGS a/c with Aadhaar

The government has started a drive to bring all active workers of the National Rural Employment Guarantee Scheme (NREGS) under the Aadhaar framework to bring down duplication under the scheme and prevent leakage of funds.
The rural development ministry, in consultation with the department of financial services, will organise camps in villages to seek consent of the beneficiaries for seeding their bank accounts to their Aadhaar numbers.“Linking with Aadhaar will help us reduce leakages in the transfer of funds to the beneficiary’s account... The biometric verification ensures that money is reaching the right person,” a senior official told ET. Rural development ministry has roped in Indian Banks’ Association along with 13 private sector banks for the exercise. 
So far 50% of the 10.7 crore active workers under NREGS have linked their bank accounts with the 12-digit Aadhaar identity. “While we had gathered Aadhaar information of over 85% workers, banks want to receive the consent firsthand,” another senior rural development ministry official said. 
The camps, which began on July 25 , will be held till September 10 across the country. 
The government has issued the standard operating procedure to banks and NREGS officials for getting the consent forms from the beneficiaries during the camp. 
In a major clean-up exercise, government is simultaneously conducting an exercise to weed out bogus and invalid job cards under NREGS. 
Nearly 1.12 crore job cards have been deleted after they were found to be fake. Of these, over 10 lakh workers, no more interested in enrolling for the NREGS, have surrendered their job cards to the government. 
During April-July period so far, over 93.5 crore person days of work have been generated under the scheme with 86% payments made on time. 
Delay in payments is one of the major criticisms of the scheme. This year, the rural development ministry released Rs 23,443 crore — half the budgetary allocation under the scheme — to states in April to ensure there was adequate flow of funds and to avoid delays. 
The remaining amount is expected to be released to the states in September after the submission of a detailed audit report. The ministry has also been asked to upscale the National Electronic Fund Management System for direct fund transfers to beneficiaries’ accounts to all states. 
The Economic Times, New Delhi, 26th July 2017


Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …