National Electronic Fund Management System for payment of wages for Mahatma Gandhi National Rural Employment Guarantee


Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a demand driven wage employment programme. To ensure that Mahatma Gandhi NREGA workers receive their wages on time, National Electronic Fund Management System (NeFMS) has been put in place.

It has been brought to the notice of the Central Government that in many cases due to frequent changes in Bank Account Number by the beneficiary and non-updating of the new account number by the Concerned Programme Officer of the same, due to non-submission of new account by the beneficiary on time, several transactions of wage payment are being rejected (due to old account number) by destination bank branch.

In consultation with different stakeholders, it is found that to avoid such rejections, APBS is the best route for making wage payment through Direct Benefit Transfer (DBT). It will help the beneficiaries in getting their wage payment on time.

Once Aadhaar is updated in the scheme database, beneficiary need not update account numbers due to change in location or change in bank account number. Money will be transferred to the account number which is linked with Aadhaar number. In case of more than one account of the beneficiary, which is rare in the context of Mahatma Gandhi NREGS, beneficiary has the choice to select the account.

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