Direct benefit transfer not possible if the job card holders don’t have bank accounts, says government source
Eastern Mirror Desk
Dimapur, April 24: The Nagaland Public Rights Awareness and Action Forum (NPRAAF) has accused the state’s Finance department of delaying the release of INR 242, 75, 77,000 (Two hundred forty two crore seventy five lakh seventy seven thousand) which was released by the Ministry of Rural Development on April 8 as first instalment under MGNREGA for the people of the state during 2019-20. It claimed in a press release that the amount should have been deposited in the bank account of job card holders through direct benefit transfer (DBT) but it is still lying with the finance department.
However, the department of Rural Development has a different story to tell when contacted by Eastern Mirror regarding the allegation. A reliable source from the department admitted that the fund has been released to the state Finance department but direct benefit transfer can’t be implemented if the job card holders don’t have bank accounts, which is a must to avail the scheme. The sources lamented that most beneficiaries don’t open bank account which results in delay.
The NPRAAF said in a press release that MGNREGA was initiated by the government of India with the objective to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household and to provide schemes which in turn provide opportunity for the adults of a family to do unskilled work at a minimum payout of INR 192.00 per day. It added that there are about 1, 26,000 job card holders in Nagaland.
“NPRAAF is surprised that, Nagaland State government had recently issued an order No.RD/MGNREGA/LB-1/2019, Dated 18/04/2019 directing all project Directors/BDOs to freeze all job card holders bank accounts by 30th April 2019 even before the sanctioned amount is disbursed to the beneficiaries in the name of transferring the benefit by DBTs, warning that, fund will be held up to those district, who fail to comply with the instruction,” read the statement from the forum.
“If the Govt freezes the bank account of the job card holders which was opened with much difficulty with the purpose of receiving cash transferred to their personal bank Account, what alternative arrangement has the government made to transfer the cash to the beneficiaries? Unless the govt clarifies, the decision of the State government will remain ambiguous and puzzling,” it added.
The forum claimed that the beneficiaries were made to believe that they would get the benefit only after freezing the bank account, adding that a bank resorts to such action to prevent any transaction and open transaction will be cancelled. It went on to say that the state government should not freeze the bank account of job card holders who depend on such schemes for better economic life.
It also appealed to the government to immediately disburse the amount to the legitimate job card holders and warned that it “will not remain mute spectator but will take appropriate steps” if the legitimate beneficiaries are given their due.
Responding to the allegation levelled by NPRAAF, a reliable source from the department of Rural Development told that the said fund is not released for a reason.
The source said that the real concept of MGNREGA is to give opportunity to the unskilled labourers. “In our context, it is INR 177 per day per person. In Nagaland, the daily wage earners earn about INR 500-600. With that in mind, our people will not go for INR 177 which is why MGNREGA is hard to be implemented in Nagaland, but still the state government considered.”
“The rural development (department) doesn’t say no to it (release of fund); we also want to follow the directives given by the ministry but the ground realities are different,” said the source, adding that the procedure of the MGNREGA fund is time consuming. ‘After the state receives the fund, the Finance department will first take the fund placement. Later, the department will submit proposal for its release. That is why it will take time,’ the official explained while assuring that “the proposal will be submitted today (April 25).”
“The voice raised on the direct benefit transfer (DBT is good, but due to the non availability of banking facilities, it may take more time,” the source added.
“Direct benefit transfer means money should go into the beneficiaries’ bank account (job card holders). In Nagaland, we have 74 blocks, out of which 32 blocks do not have banking institution. If there is no bank, how can they open a bank account?” asked the source.
It said that the 42 blocks that have bank coverage are located in the district headquarters, except few subdivisions. “So it becomes difficult for the villagers to spend two-three days in order to open a bank account.”
The official maintained that there is ‘only one guideline in the country’ but the policy makers in Delhi do not know the situations and ground realties in Nagaland. “We have discussed several times about this issue but the policy makers only respond that ‘there is only one guideline and there is no exception,’” added the source.
The official said that Nagaland will take time to implement DBT due to the aforementioned reason. Earlier this month, the source said, the department conducted a state-level bankers’ committee meeting. “There we discussed about this issue several times. But banks cannot be opened easily according to our preference.”
“To open the bank, there are several procedures as it is a commercial institution. There has to be enough security, infrastructure, connectivity, and most importantly there should also be reasonable amount of customers,” said the source.
