Wage disbursement through bank accounts for MGNREGA workers:Evaluation report

Introduction
MNREGA was introduced by the Government of India with the aim of providing 100 days of unskilled manual labour to all the adult members
of a rural household. The alleviation of the condition of the rural people is its major concern. Most of the beneficiaries of the programme are
women and hence the programme also tries to bring about gender equality and regular income for the rural women in its own subtle way. But
even with its progressive vision, it has been vehemently criticized on various grounds. After 2008,it was decided to pay the wages through
banks and post offices to the beneficiaries. In Tamil Nadu, a panchayat in each block has been selected as a pilot village by the introduction of
the banking system in order to know its effectiveness. This study attempts to analyze the same and draw presumption which can be adopted for
the betterment of the programme.
Method of Data Collection
The methods of data collection included personal interviews with the stakeholders and also by direct observation.
Tools of Data Collection
Prepared questionnaires were used for collecting the data from the stakeholders.

Data analysis and Interpretation

Block name:Kadambathur
Date:19/6/12

Banking panchayat beneficiaries

Name of the village: Papparambakam
Number of workers observed in the field:44 beneficiaries
Involvement of Gram Panchayat in the banking system
The Panchayat officials helped most of the beneficiaries in opening their zero balance accounts.But some of them had created their account and
then joined the NREGA programme.No training was given by the panchayat to the beneficiaries regarding the banking procedures.In the case of
zero balance accounts they were provided with yellow cards and in the case of 100 rs payment they were provided with white cards.
Acceptability of the current method
They are not satisfied with the current system of wage payment.Because they have to travel a long distance to reach the bank
Awareness level of beneficiaries about banking system
They were not provided with any of the orientation classes regarding banking procedures.Illeterate people are not aware about the banking
procedures.Cluster help them in doing banking procedures
Potentials and threats in implementing banking system in the Panchayat
Potentials: It can help the beneficiaries in improving their saving habits and should be secure
Threats: The bank is 10 kms away from the panchayat. The beneficiaries have to incur the travel expenses, which comes to Rs 30 to 40 by auto
and 14 rs for bus fare. Not all the beneficiaries knew about the banking procedures and the non cooperative attitude of the staff also contributed
to their dislike to the banking system.
BCM and acceptability of banking system
The beneficiaries accepted the idea of BCM when it was explained to them.

Non-banking Panchayat Beneficiaries

1)Names of the villages: Kannur Gramapanchayat
Number of beneficiaries:

Involvement of the panchayat in the wage payment

The panchayat has created zero balance accounts to the beneficiaries. No training about the banking procedures were given to the beneficiaries.
Wages are paid correctly on every Tuesdays.
Acceptability of the current method
The beneficiaries prefer direct payment as compared to the banking system. They feel that it is more convenient and reliable for them. They
also feel that through direct payment they will get their wages on time and they also attached a sense of pride in collecting the wages directly
from the wage committee.
Awareness level of beneficiaries about banking system
The beneficiaries are aware that there are some panchayats where the wages are given through the bank accounts. Most of the beneficiaries
dont knew how to deposit and withdraw money from the bank.
Potentials and threats in implementing banking system in the Panchayat
Potentials: It can help the beneficiaries in improving their saving habits
Threats: The bank is 10 kms away from the panchayat. The beneficiaries have to incur the travel expenses, which comes to Rs 30 to 40 by auto
and 14 rs for bus fare. Not all the beneficiaries knew about the banking procedures and the non cooperative attitude of the staff also contributed
to their dislike to the banking system.
BCM and acceptability of banking system
The beneficiaries accepted the idea of BCM when it was explained to them.

2) Names of the village:Muthugoor panchayat

Number of beneficiaries:
Involvement of the panchayat in the wage payment
The panchayat has created zero balance accounts to the beneficiaries. No training about the banking procedures were given to the beneficiaries.
Wages are paid correctly on every Tuesday.

Acceptability of the current method

The beneficiaries prefer direct payment as compared to the banking system. They feel that it is more convenient and reliable for them. They
also feel that through direct payment they will get their wages on time .

Awareness level of beneficiaries about banking system

The beneficiaries are aware that there are some panchayats where the wages are given through the bank accounts. Most of the beneficiaries
dontknow how to deposit and withdraw money from the bank.

Potentials and threats in implementing banking system in the Panchayat

Potentials: Some of them doesnt like banking because of the transportation problem and difficulty to understand the banking procedures.
Threats: The bank is 6 kms away from the panchayat. So many people are elder in the group thats why they believe to face difficulties while
receiving money through the bank. Not all the beneficiaries knew about the banking procedures and the non cooperative attitude of the staff
also contributed to their dislike to the banking system.

BCM and acceptability of banking system

The beneficiaries accepted the idea of BCM when it was explained to them.