GOI to start electronic transfer of MGNREGA wages from 2016

To prevent leakages in the MGNREGA programme, GOI will introduce the system for electronic transfer of wages to the beneficiaries from January 1, 2016 in Kerala. If it is successful, it will be introduced (e-transfer of wages) in other states. An additional Rs 2,000 crore would be sought from the Finance Ministry towards ensuring that MNREGA wages are at par with the agriculture wages fixed by some states. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides 100 days of employment to registered workers on their demand.

To avoid bogus attendance as well as instances of tampering and misuse of muster rolls, the e-Muster system has been introduced. For smooth fund flow, the electronic Fund Management System (e-FMS) has been made mandatory from April 1 this year.


  • Around 182 million beneficiaries (15 percent of India’s population) are provided social security by MGNREGA (under Ministry of Rural Development).
  • The basic objective of the Act is to enhance livelihood security in rural areas.
  • It aims to achieve it by providing a minimum of 100 days of guaranteed wage employment in a financial year to every household, whose adult members volunteer to do unskilled manual work.
  • According to the recently released World Bank Group’s report titled as “The State of Social Safety Nets 2015,” MGNREGA has been ranked as the world’s largest public works programme.

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