Linking of Mnregs with the Banking System

Under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) all wage payments are to be made through accounts in the Banks or Post Offices, as per the information received from the Ministry of Rural Development. As per Paragraph 30 of the revised Schedule II, notified recently under the MGNREG Act 2005, the payment of wages shall be made only through the accounts in the banks or post offices, unless specifically exempted.

Nearly 74.38 lakh accounts have been opened in the cooperative banks for disbursement of wages. MoRD has informed that and there is no provision for any additional compensation to these institutions, for disbursement of wages under MNREGS.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.