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NREGA Wage Payments: Can We Bank on the Banks?

The government of India has shifted from cash payment of wages under the renamed Mahatma Gandhi Employment Guarantee Scheme to settlement through bank accounts. This has been done in order to prevent defrauding of workers and to give them greater control over their wages. Has this been achieved after the switch? Based on a survey in December 2008 in one block each in Allahabad (Uttar Pradesh) and Ranchi (Jharkhand) districts, this article probes questions related to payment of wages through banks.

NREGA Wage Payments: Can We Bank on the Banks?

Anindita Adhikari, Kartika Bhatia

The government of India has shifted from cash payment of wages under the renamed Mahatma Gandhi Employment Guarantee Scheme to settlement through bank accounts. This has been done in order to prevent defrauding of workers and to give them greater control over their wages. Has this been achieved after the switch? Based on a survey in December 2008 in one block each in Allahabad (Uttar Pradesh) and Ranchi (Jharkhand) districts, this article probes questions related to payment of wages through banks.

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