GOVERNMENT’S MANDATE ON AADHAAR-BASED PAYMENT SYSTEM (ABPS)

Why in the News?

  • The Government has made the Aadhaar-based payment system (ABPS) compulsory for National Rural Employment Guarantee Scheme (NREGS).
  • This move ensures wage payments are processed through ABPS, linking workers’ 12-digit Aadhaar numbers with job cards and bank accounts.

Exemptions Considered:

  • On a case-by-case basis.
  • Gram panchayats facing technical or Aadhaar-related issues
Source: IE

About MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme)

  • Enacted in 2005, Under (Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • Guarantees 100 days of wage employment annually
  • Aims to enhance livelihood security in rural areas.
  • Focuses on labour-intensive work like road construction, water conservation,and rural infrastructure.
  • Provides social security through employment.
About Aadhaar Payments Bridge System (APBS):

·   Aadhaar Payments Bridge System (APBS) is a Digital platform by NPCI and UIDAI for electronic transfer of government benefits.

·   Utilizes Aadhaar, a 12-digit identification number, to directly transfer subsidies to beneficiaries’ bank accounts.

ABPS Success Status:

·   NPCI reports a 99.55% success rate for Aadhaar-enabled Direct Benefit Transfer (DBT).

·   Out of 14.28 crore active beneficiaries, 13.75 crore Aadhaar numbers linked.