RBI to ensure NREGA fund release only through bank,PO accounts

In a letter to the RBI,the Planning Commission said the apex bank should give directions to banks to ensure that payments to the beneficiaries of the NREGA are made only through banks or post-offices,a source said. The move comes after the rural development ministry wrote to chief ministers of those states where opening of bank/post office accounts is lagging. The government’s move reflects the ministry’s eagerness to ensure transparency and integrity in implementation of the programme.

During a recent review of the programme’s implementation process,it emerged that of the 7,41,52,466 households comprising 16,60,73,785 persons,6,73,82,786 job cards had been issued. In Assam,Bihar,Chhattisgarh,Gujarat,Haryana,Himachal Pradesh,Jammu and Kashmir and Madhya Pradesh the post office/ bank accounts opened are less than 50 per cent of the households provided employment under NREGA. In fact,according to official sources,in Assam,Bihar,Chhattisgarh,Mizoram,Punjab,Tripura and West Bengal,less than 20 per cent accounts have been opened.

According to the ministry’s data,total money available to the states in 2008-09 (up to December) was Rs 26,307.76 crore,of which the Centre’s contribution was Rs 20,187.87 crore,but total expenditure was only Rs 17,076.18 crore,implying that states could utilise only 64 per cent of total funds.

In fiscal 2007-08,states received Central funds amounting to Rs 12,610.39 crore,taking the total fund available to Rs 19,305.81 crores,but utilisation was only Rs 15,856.89 crore. Similarly,in fiscal 2006-07,the Centre released Rs 8,640.85 crore,taking the total corpus to Rs 12,073.55 crore,but only Rs 8,.823.35 crore was utilised.