The Union Cabinet chaired by Prime Minister Narendra Modi has approved the release of wages directly to the accounts of the workers engaged under the Mahatma Gandhi National Rural Employment Guarantee Act, (MGNREGA).
According to reports, under the scheme, the wage component of MGNREGA will be released following the State Employment Guarantee Fund window directly 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.
The decision is aimed at further streamlining the flow of funds and to empower state governments to deliver entitlements as per the objectives of the Act.
The scheme is expected to ensure greater transparency in movement of funds and lesser levels of corruption in MNREGA.
The gram panchayats would also be empowered to take up work according to the agreed labour budget, without struggling for release of funds.
