Aadhaar Linking Reduces MGNREGS Wage Delays, Fund Transfers Double Too

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Linkage of MGNREGS accounts with an Aadhaar-linked payment (ALP) system significantly boosted efficiency of wage transfers, doubling funds transferred and increasing work allotted in times of distress as compared to previous years when demand actually dropped during economic stress due to leakage and delays in payments. An Indian School of Business study that examined annual data for blocks which had drought conditions in financial years 2012-2017 showed clear changes in the pre- and post-ALP system with regard to work generated, individuals and households benefited and the speed and volume of bank transfers that point to an increased uptake of the workfare programme.

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