How has Aadhar-linked pay become mandatory for MGNREGS workers

The implementation of Aadhaar-linked pay for workers enrolled in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in India has been introduced to bring transparency and efficiency to the payment system. Here are the benefits and challenges associated with this mandate: Benefits:

• Identification: Aadhaar helps in establishing the identity of workers and ensures correct payment reaches the intended beneficiaries.
• Financial Inclusion: Linking Aadhaar with MGNREGS payments facilitates the inclusion of workers in the banking system, enabling them to avail additional financial services.
• Reduces Leakage: Aadhaar-based payments reduce the chances of corruption, fraudulent activities, and middlemen involvement, ensuring that workers receive their full entitled wage.
• Direct Benefit Transfer: It enables the direct transfer of wages into the beneficiaries' bank accounts, eliminating the need for manual disbursal and reducing administrative costs.

Challenges:

• Technical Issues: Connectivity issues, biometric failures, and database errors can hinder the smooth implementation of Aadhaar-based payments.
• Exclusion: In cases where workers do not have Aadhaar cards or face difficulty in authentication, they may face challenges in receiving their wages.
• Privacy Concerns: Critics argue that Aadhaar-linked pay infringes on individuals' privacy rights, as personal information is shared with multiple agencies for verification and authentication.
• Infrastructural Challenges: In rural areas with limited banking facilities, establishing the necessary infrastructure to support Aadhaar-based payments may be challenging.

Overall, the Aadhaar-linked pay for MGNREGS workers aims to streamline payment processes, reduce leakages, and empower beneficiaries, although there are certain challenges that need to be addressed for its effective implementation.