Question : BANK SHARE UNDER MGNREGS



(a) the role and participation of each bank including regional rural banks (RRBs) in the wage disbursement under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), State/UT-wise;

(b) the details of percentage of amount deposited with various banks including RRBs under the said scheme along with the number of beneficiaries thereunder, bank-wise, State/UT-wise;

(c) whether the Government has received any proposal from All India Regional Rural Banks Employees Association for increasing the manpower, service charge, proportional fund deposit to cater to the beneficiaries under the scheme;

(d) if so, the details thereof; and

(e) the action taken/being taken by the Government thereon?

Answer given by the minister


The Minister of State in the Ministry of Finance (Shri Namo Narain Meena)

(a) and (b):-As per Ministry of Rural Development (MoRD), with a view to ensure timely payment, infusing transparency and enhancing the integrity of wage payment, Schedule II of Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA) has been amended to provide for wage disbursement to MGNREGA workers through accounts in Banks or Post Offices. MGNREGA workers are entitled to open accounts either in Banks or Post Offices with a zero balance. State-wise details of cumulative number of bank accounts opened for MGNREGA workers and amount of wages disbursed through bank accounts under MGNREGA as reported by States/UTs to MoRD in MIS are given in Annex.

(c) to (e):- All India Regional Rural Banks Employees Association (AIRRBEA) had represented in 2009-10 raising inter-alia the issues of shortage of staff in view of massive branch expansion, financial inclusion and NREGA, etc.

Appointment of personnel in banks, including in the RRBs, is an ongoing process taking inter-alia into consideration growth in business and superannuation of personnel.

The following steps have been taken to meet requirement of staff and ensure smooth functioning of RRBs:

(i) Appointment and Promotion Rules of RRBs were revised and notified in 2010

(ii) All RRBs have migrated to Core Banking Solution and have joined National Payment System;

(iii) RRBs have been advised to install ATMs in all branches;

(iv) RRBs have been advised to open Ultra small branches, to move towards providing internet banking facilities to their customers and to provide training to staff on regular basis.