The Madhya Pradesh Panchayat and Rural Development Minister, Shri Gopal Bhargav has demanded that the Central Government should immediately remove the procedural difficulties being experienced in payment of wages to the workers under the National Rural Employment Guarantee Scheme and to bear the two percent “transaction cost” being charged by the banks.Shri Bhargav made this plea while speaking at the National Conference of States Panchayat and Rural Development Ministers in New Delhi today. The Prime Minister, Dr. Manmohan Singh inaugurated the conference.
Highlighting the Madhya Pradesh Government’s concept and facts regarding the procedure of wages payment under the NREGS at the conference, the Panchayat and Rural Development Minister, Shri Gopal Bhargav said that the procedure of wages payment through banks and postoffice is being adopted with a view to ensuring transparency and fixing accountability of the officers and employees in the execution of works under the NREGS.
However, he pointed out that the beneficiaries are facing a lot of difficulties in getting the wages payment in the absence of initiation of effective steps with regard to all aspects of the system. Referring to the reasons for the delay in wages payment through the banks, Shri Bhargav informed that as on March 31, 2008 there were about 40 lakh bank accounts in operation.
Alone in March 2009 new bank accounts totaling 58 lakh of workers under the NREGS have come into operation in the state. He added that there has been a tremendous increase in the number of bank accounts in a period of one year.
He further pointed out that there has been less expansion of arrangements and resources as compared to the increase in the work of banks. He said that there is acute shortage of bank branches and employees in the predominantly tribal areas of the districts included in the first phase under the NREGS.
The number of workers is maximum in these areas. The needy persons including the women who seek employment in order to meet their immediate requirements, are even to wait for 2 to 3 months in receiving their wages payment.
In view of the above facts, an atmosphere of depression and anger is building up among the workers in the remote rural areas towards the NREGS. Consequently, the state governments are being faced with criticism on this issue.
Shri Bhargav said that there is an urgent need to seek an instant solution to this vital issue by holding discussions with the banks. The Madhya Pradesh Government has taken up the issue with the banks with regard to proposal of electronic benefit transfer scheme.
As per the directives of the Reserve Bank of India, the banks are demanding two percent transaction cost. The state government has sent a proposal to the Centre in this regard. This should be sanctioned immediately, Shri Bhargav stressed.
Continuing, the Panchayat and Rural Development Minister, Shri Gopal Bhargav also underlined the need to make the working and existence of the Self Help Groups (SHGs) broad based. He said that a new work culture should be developed in the existing SHGs.
Shri Bhargav said that in order to make the role of SHGs more effective, the Central Government should make provision for development of state level resources center. Hailing the decision to set up livelihood mission at the national level, the Panchayat and rural Development Minister, Shri Bhargav said that an integrated livelihood forum has already been constituted in Madhya Pradesh. And, the work is being done in accordance with the policies of the Union Government in this direction.
Highlighting the Madhya Pradesh Government’s concept and facts regarding the procedure of wages payment under the NREGS at the conference, the Panchayat and Rural Development Minister, Shri Gopal Bhargav said that the procedure of wages payment through banks and postoffice is being adopted with a view to ensuring transparency and fixing accountability of the officers and employees in the execution of works under the NREGS.
However, he pointed out that the beneficiaries are facing a lot of difficulties in getting the wages payment in the absence of initiation of effective steps with regard to all aspects of the system. Referring to the reasons for the delay in wages payment through the banks, Shri Bhargav informed that as on March 31, 2008 there were about 40 lakh bank accounts in operation.
Alone in March 2009 new bank accounts totaling 58 lakh of workers under the NREGS have come into operation in the state. He added that there has been a tremendous increase in the number of bank accounts in a period of one year.
He further pointed out that there has been less expansion of arrangements and resources as compared to the increase in the work of banks. He said that there is acute shortage of bank branches and employees in the predominantly tribal areas of the districts included in the first phase under the NREGS.
The number of workers is maximum in these areas. The needy persons including the women who seek employment in order to meet their immediate requirements, are even to wait for 2 to 3 months in receiving their wages payment.
In view of the above facts, an atmosphere of depression and anger is building up among the workers in the remote rural areas towards the NREGS. Consequently, the state governments are being faced with criticism on this issue.
Shri Bhargav said that there is an urgent need to seek an instant solution to this vital issue by holding discussions with the banks. The Madhya Pradesh Government has taken up the issue with the banks with regard to proposal of electronic benefit transfer scheme.
As per the directives of the Reserve Bank of India, the banks are demanding two percent transaction cost. The state government has sent a proposal to the Centre in this regard. This should be sanctioned immediately, Shri Bhargav stressed.
Continuing, the Panchayat and Rural Development Minister, Shri Gopal Bhargav also underlined the need to make the working and existence of the Self Help Groups (SHGs) broad based. He said that a new work culture should be developed in the existing SHGs.
Shri Bhargav said that in order to make the role of SHGs more effective, the Central Government should make provision for development of state level resources center. Hailing the decision to set up livelihood mission at the national level, the Panchayat and rural Development Minister, Shri Bhargav said that an integrated livelihood forum has already been constituted in Madhya Pradesh. And, the work is being done in accordance with the policies of the Union Government in this direction.
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