Getting rural India to register for Aadhaar, the unique identification number scheme, is going to be a rewarding experience for banks. Leveraging on the government’s financial inclusion agenda, the Unique Identification Authority of India (UIDAI) has decided to pay Rs 50 per enrolment to banks and Life Insurance Corporation of India, which are acting as its registrars, for signing up residents till March 2011. Besides, any person who is below...

Even before the Reserve Bank of India (RBI) finalizes the guidelines for handing out new bank licences, its draft proposal has evoked unease in the National Bank for Agriculture and Rural Development (Nabard), which oversees the country’s 82 regional rural banks (RRBs). Nabard has taken exception to the banking regulator’s proposal to allow industrial houses to take over RRBs and convert them into full-fledged banks, saying such a move could dilute...

In its final recommendations on the proposed Food Security Act, the Sonia Gandhi-led National Advisory Council finally has acknowledged the twin constraints of the budget and the availability of foodgrains by stopping short of “universalisation” of a government-guaranteed right to subsidised food. Given the NAC’s composition and remit, its recommendation is likely to influence the final draft. The NAC still leans in favour of spreading the targeting net too wide, and...

The Union government is reneging on its legal obligation to pay minimum wages, even to the most deprived sections of the population, in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme. If anyone wants to study the capacity of India's policymakers to turn a progressive piece of legislation upside down, the wage policy under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a good place to...

More than 200 tax investigators in India have searched the offices of a number of contractors used in the run-up to the Commonwealth Games. The raids in Delhi came as the main opposition party, the Hindu nationalist Bharatiya Janata Party (BJP), demanded a parliamentary investigation. The Games, which ended last week in Delhi, were marred by spiralling costs and allegations of corruption. The BJP says it has evidence of wrongdoing at government...