Union Cabinet approves direct release of Wages for MNREGA workers into their bank accounts (Download PDF)


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About MNREGA: Mahatma Gandhi National Rural Employment Guarantee Act is a changed name of National Rural Employment Guarantee Act 2005. It is a low for Indian labours and also provides social security that guarantee to give ‘right to work’.

  • It gives support of source in rural areas by providing at least 100 days of pay employment in an economic year to every family whose adult members can to do unskilled manual work.

About approval:

  1. Union Cabinet approves direct release of Wages for MNREGA workers into their bank accounts.
  2. The fund transfer will be based on procedure given by Union Rural Development Ministry.
  3. Then wages of worker will transfer to the State Employment Guarantee Fund window.
  4. The gram panchayat’s role in this scheme will be to give the labour their agreed budget and without any complication for release of funds.

About strategy of this approval:

  1. The strategy of Union cabinet for this approval is to restructure the flow of funds and to permit state governments to deliver powers as per the goals of the Act.
  2. So, the wage component will be directly released to the worker’s accounts based on a fund transfer order to be generated by state’s implementing agencies of government.
  3. Advantages of direct transformation in banks:
  4. This approval will improve overall effectiveness of employment and benefit all investors.
  5. It will bring minor levels of corruption in MNREGA and greater clearness in transferring of funds.
  6. State governments will be able to spend more time in planning and improving the process effectiveness rather than troubling to manage implementation of scheme for funds.

- Published/Last Modified on: August 7, 2015


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