Central Idea:

The Rural Development Ministry mandated Aadhaar-Based Payment Systems (ABPS) in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), despite protests from workers and questionable government claims. The article highlights the complexities of ABPS, the lack of evidence supporting its benefits, and the misrepresentation of research findings that supposedly endorse ABPS. It argues for the continuation of account-based payments in MGNREGS.

Key Highlights:

• ABPS Complexity: ABPS in MGNREGS involves Aadhaar seeding, authentication, and linking to bank accounts, leading to potential glitches causing wage delays and denial of work.
• Government Claims: The government asserted that ABPS would eliminate duplicate job cards, reduce delays, and lower payment rejections, but these claims are questioned.
• Deletion of Job Cards: Officials reportedly deleted job cards under pressure to meet Aadhaar seeding targets, leading to spelling mismatches and exaggerated savings claims.
• LibTech Study: A public research group’s study, cited by the government, found no statistically significant difference in efficiency between ABPS and account-based payments.
• Misrepresentation: The Ministry misrepresented the LibTech study, incorrectly claiming that it endorsed ABPS despite no significant gains.

Key Challenges:

• Technological Glitches: Workers face issues due to errors in Aadhaar seeding, authentication, and bank account linking, causing financial losses and delays.
• Deletion of Job Cards: Job card deletions surged, raising concerns about the accuracy of the process and the pressure to meet Aadhaar seeding targets.
• Misleading Claims: The government’s claims of efficiency gains with ABPS are contradicted by research, indicating a lack of transparency and credibility.

Key Terms and Phrases:

• Aadhaar-Based Payment Systems (ABPS): A payment system using Aadhaar authentication and linking for financial transactions.
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A social security scheme providing rural employment.
• Aadhaar Seeding: Linking Aadhaar numbers with relevant databases, such as job cards and bank accounts.
• Job Card Deletions: Removal of MGNREGS job cards, allegedly driven by the pressure to meet Aadhaar seeding targets.

Key Quotes:

• “Incorrectness in any of the above steps for ABPS means that the worker is denied work, does not receive wages, or is not paid in their preferred account.”
• “In the last two years alone, job cards of over 7 crore workers got deleted.”
• “LibTech’s study is based on a sample of 3.2 crore transactions. The difference was not statistically significant, providing evidence that ABPS is not quicker than account-based payments.”

Key Statements:

• The government’s claims of ABPS benefits lack credibility, with evidence pointing to errors in job card deletions and questionable efficiency gains.
• The misrepresentation of research findings by the Ministry undermines the justification for making ABPS mandatory.

Key Examples and References:

• Research papers in Economic and Political Weekly highlighting errors in job card deletions and the pressure to meet Aadhaar seeding targets.
• The Ministry’s press release misrepresenting the LibTech study’s findings.

Key Facts and Data:

• A 247% increase in job card deletions in FY 2022–23, with over 7 crore workers affected.
• As of January 11, 2024, out of 25.6 crore registered workers, only 16.9 crore are eligible for ABPS.

Critical Analysis:

The article critically examines the complexities and challenges associated with ABPS, questions the government’s claims, and exposes the misrepresentation of research findings to support the mandatory implementation of ABPS in MGNREGS.

Way Forward:

• Advocate for account-based payments in MGNREGS due to the difficulties and glitches associated with ABPS.
• Emphasize the need for transparency, credibility, and evidence-based decision-making in the implementation of payment systems.
• Call for a reevaluation of the decision to make ABPS mandatory, considering the workers’ concerns and the lack of proven benefits.

By addressing these issues, the government can ensure a more efficient and transparent payment system in MGNREGS.

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