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Union Cabinet gives nod to Direct Release of Wages into bank accounts of MGNREGA workers


Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi has given its nod to the proposal of direct release of wages in to the accounts of the workers engaged under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

As per the scheme, the wage component of MGNREGA will be released following the State Employment Guarantee Fund window direct to the worker's accounts based on a fund transfer order to be generated by states' implementing agencies in accordance with procedures prescribed by Rural Development Ministry.

Direct release of wages system under the MNREGA aims to streamline the flow of funds and to empower state governments to deliver entitlements as per the objectives of the Act. The proposed system would improve overall efficiency of implementation and workers would be assured of payment of wages in the second day of the pay order generation.

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