Aadhaar Linking Helps Reduce Delays in MGNREGA Wages, Direct Fund Transfers Rise 50 Per Cent: Study
According to the study, there was an increase of over Rs 2 crore in amount disbursed in banks with the Aadhaar-linked payment system.
New Delhi, Jun 27: The use of Aadhaar-linked payment (ALP) system for payment of MGNREGA wages and direct transfers of funds helped improve efficiency of the system, a study by an Indian School of Business found.
According to the study, there was an increase of over Rs 2 crore in amount disbursed in banks with the Aadhaar-linked payment system. In the post-ALP period, the average of individuals and households allotted work increased by 12,597 and 7,579.
When it comes to direct transfers of funds, Rs 14 crore were transferred in 2016, while over Rs 9 crore were transferred in 2015. It means a jump of 50 per cent in one year. Post-ALP, the average of households that reached 100 days went up to 621 households.
“The magnitude of increased work in distressed blocks is higher in post-ALP. We also find that the total muster rolls filled and total persons worked increases in distressed block years only after implementation of ALP," the study, ‘A Friend Indeed: Does the Use of Biometric Digital Identity Make Welfare Programmes Counter-Cyclical’ found.
Linkage of MGNREGA accounts with an Aadhaar-linked payment (ALP) system made transfers of funds more efficient and foolproof process. It helped reduce delays in payments and removed leakages.
(The above story first appeared on LatestLY on Jun 27, 2018 09:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).