With an aim to contain payment scams connected with MGNREGA workers, the Centre appears determined to make use of an Aadhaar-based payment system.

Toward this end, the government has decided not to extend the deadline for implementing an Aadhaar-based payment system as the only mode of payment to workers under the National Rural Job Guarantee Scheme MGNREGA. It “will not be extended beyond August 31”, PTI report quotes “government sources” as saying. 

In fact, PM Modi-led government had in January 2023 made the use of an Aadhaar-based payment system (ABPS) mandatory for paying wages to those workers who were enrolled under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA).

The initial deadline for the mandatory adoption of ABPS mode was February 1. This was later extended to March 31. Next, an extension was again given to this till June 30. Now, it is said will not be extended after August 31, 2023.