A revamped version of the Mahatma Gandhi Rural Employment Guarantee Scheme, the government's flagship social sector programme, will be unveiled on November 14. The makeover, crafted by rural development minister Jairam Ramesh and Planning Commission member Mihir Shah, promises to iron out administrative glitches that have dogged the six-year-old scheme, credited for boosting incomes but panned for stoking inflation. "We are ready with version 2 of MGNREGA. It will basically strengthen the...

Tamil Nadu has stopped using banks to pay workers employed under the National Rural Employment Guarantee Scheme (NREGS), turning the clock back on the programme that was expected to eliminate layers of middlemen in reaching money to the poor. Rural development ministry officials at the Centre confirmed the development, but termed it “a temporary setback”. However, Tamil Nadu is not alone. Andhra Pradesh too has asked some of its poorest...

The government has asked banks to accept identity proofs issued in other states as valid documents for opening no-frills bank accounts, in a move that will help millions of migrant workers, including domestic helps and drivers, access banking services.  At a specially convened meeting to push the financial inclusion agenda, the finance ministry asked bankers to accept the identity proofs and use their branch network in other states to verify the...

The Smart Card Project is helping nearly 12.7 million poor people in Andhra Pradesh to get timely payment of wages It was conceived as a vehicle to promote financial inclusion by taking banking services to the unbanked poor, harnessing information and communications technology to ensure the benefits of public welfare programmes reach those they are intended for by plugging leakages. The Andhra Pradesh Smart Card Project, launched in 2007, is...

Nandan Nilekani led Unique Identification Authority of India (UIDAI) has hit a Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) roadblock. The government had refused to make unique number or Aadhaar mandatory for making wage payment to people enrolled under the world’s largest social security scheme unless all residents are covered. The reason given was that MGNREGA is a universal scheme and anyone can demand work. Unless all resident in a district have...