Union Cabinet approved direct release of wages into bank accounts of MNREGA workers

The decision is aimed at further streamlining the flow of funds and to empower state governments to deliver entitlements as per the objectives of the Act.

Created On: Aug 6, 2015 08:08 IST

The Union Cabinet on 5 August 2015 approved release of wages directly to the accounts of the workers engaged under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The decision in this regard was taken by the Cabinet, chaired by Prime Minister Narendra Modi, in New Delhi.

As per the scheme, the wage component of MGNREGA will be released following the State Employment Guarantee Fund window directly to the worker's accounts. The transfer will be based on a fund transfer order to be generated by states' implementing agencies in accordance with procedures prescribed by Rural Development Ministry.

The decision is aimed at further streamlining the flow of funds and to empower state governments to deliver entitlements as per the objectives of the Act.

The proposed system would benefit all stakeholders and improve overall efficiency of implementation. The scheme will also ensure bring greater transparency in movement of funds and lesser levels of corruption in MNREGA.

The gram panchayats would also be empowered to take up work according to the agreed labour budget, without struggling for release of funds. After this scheme the state governments would be able to spend more time in planning and improving the process efficiency, without bothering to manage funds for implementation of scheme.

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