MGNREGA workers who have completed their e-KYC at their bank branch can collect cash at these customer service points by presenting their Aadhaar card and biometrics. They can also approach business correspondents for the same purpose.
However, people belonging to the Adivasi community face several challenges, such as disparities in the payment channels and their toilsome wage-collection journeys, in accessing MGNREGA payments.
In the Paderu Integrated Tribal Development Agency (ITDA) area, the average number of people served by each bank branch stands at 34,000 for Adivasis and 7,000 for non-Adivasis, per a study conducted by LibTech India, a research organisation in the town.
The study says that nearly 85% of the Adivasis in the Paderu ITDA receive their wages through business correspondents or customer service points, while only 12.5% have access to banks, and a mere 2.5% use ATMs. This disparity is understandable, given the scarcity of bank branches in hilly regions. However, even when these are accessible, the MGNREGA workers are redirected to business correspondents or customer service points.
LibTech’s study shows that approximately 37% of the workers have to commute more than 10 kilometers to access their wages, with even higher percentages observed for bank branches (48%) and ATMs (58%).
by EAS Sarma and Chakradhar Buddha
31/08/2023