Pay transaction cost to banks for NREGA: MP Govt to Centre
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Last Updated: Wednesday, September 09, 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 09, 2009, 20:37

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