Bank accounts mandatory for MGNREGA labourers

The government has launched a special drive since September 1 which will go on till October 15 to help labourers open bank accounts which may not have conditions like minimum balance, officials said.

Presently, wages are paid to labourers through post offices which have a wider reach in the state compared to banks.

"Post offices have been the only option in rural areas. The postmaster withdraws money and personally distributes it in the village," officials said adding this led to delays.

As per amendment to the Mahatma Gandhi National Rural Employment Guarantee Scheme(MGNREGA),it will be made mandatory for all labourers to have their accounts in banks.

Except districts like Bhandara and Latur, MGNREGA labourers have their accounts in post offices. In remote areas, there are not many bank branches. But the process of disbursement of wages through post offices result in delays, they said.

The Banking Correspondent(BC) model will help people in rural areas to open bank accounts and transfer existing accounts from post offices to banks. Labourers can get their wages through the BC in their village itself, they said.

The accounts of labourers would be transferred to banks in a phased manner, officials said adding that priority would be given to blocks which are fully developed and has good banking network.

The government would pay the wages to the labourers by transferring money to their bank accounts through use of E-muster and electronic fund management system.