Pay transaction cost to banks for NREGA: MP Govt to Centre

Last Updated: Wednesday, September 9, 2009 - 20:37

New Delhi: Madhya Pradesh Rural and Panchayat
Development Minister Gopal Bhargava on Wednesday asked the Centre to bear the two per cent `transaction cost` demanded by banks
while paying workers employed under the National Rural
Employment Guarantee Act (NREGA).

Bhargava was speaking during the conference of state
ministers of rural development and panchayati raj here.

About 98 lakh active accounts were operational under
NREGA till March 2009, in Madhya Pradesh.

Bhargava stressed on the need to open bank branches in
the tribal areas to improve the delivery mechanism.

There is an acute shortage of bank branches and their
employees in the tribal-populated areas of the state due to
which there has been delay of about two to three months in
paying daily wages to them, the minister said.

As per the RBI guidelines, banks get two per cent as
transaction cost for paying the wages to the workers.

The National Rural Employment Guarantee Act aims to give
livelihood security to the households in rural areas of the
country by providing at least 100 days of guaranteed wage
employment in every financial year to every household whose
adult members volunteer to do unskilled manual work.

Bureau Report



First Published: Wednesday, September 9, 2009 - 20:37

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