3-Jun-2023: About 88 % of the wage payment has been made through ABPS till May 2023

It has been brought to the notice of the Central Government that in many cases due to frequent changes in Bank Account Number by the beneficiary and non-updation of the new account number by the Concerned Programme Officer of the same, due to non-submission of new account by the beneficiary on time, several transactions of wage payment are being rejected (due to old account number) by destination bank branch.

In consultation with different stakeholders, it is found to avoid such rejections; ABPS is the best route for making wage payment through DBT. It will help the beneficiaries in getting their wage payment on time.

Once Aadhar is updated in the scheme database, beneficiary need not update account numbers due to change in location or change in bank account number. Money will be transferred to the account number which is linked with Aadhar number. In case of more than one account of the beneficiary, which is rare in the context of MGNREGA, beneficiary has the choice to select the account.

NPCI data shows that there is higher success percentage to the extent of 99.55% or above where the Aadhaar is enabled for DBT. In case of Account based payment such success is about 98%.

Under Mahatma Gandhi NREGS, ABPS is in use since 2017. After almost universal availability of Aadhaar number to every adult population, now Government of India decided to extend ABPS for beneficiaries under the scheme. The payment will land through ABPS only to the account associated with ABPS, which means that it is a safer and faster way of payment transfer.

Out of the total 14.28 crore active beneficiaries, the Aadhaar has been seeded for 13.75 crore. Against these seeded Aadhaar, a total 12.17 crore Aadhaar have been authenticated and 77.81% are now already eligible for ABPS.  In the Month of May 2023, about 88 % of the wage payment has been made through ABPS.

As per UIDAI, more than 98% adult population is having Aadhaar number. In case an individual needs Aadhaar number, she or he can get by visiting appropriate agency or nearby Aadhaar centre.

States have been requested to organize camps and follow up with beneficiaries to achieve 100 % ABPS. Ministry has made it clear to all the States that the beneficiary who comes for work should be requested to provide the Aadhaar number but will not be refused work on this basis.

If a beneficiary does not demand for work, in such case her/his status about eligibility for ABPS does not affect the demand for work.

Job cards cannot be deleted on the basis of reason that the worker is not eligible for ABPS.

Mahatma Gandhi NREGA is a demand driven Scheme and is affected by various economic factors. Proper ecosystem for ABPS is in place. Considering the benefits of ABPS for beneficiaries, this is the best system to be followed for the payment.

Aadhaar based payment system is nothing but a route through which the payment is getting credited in the account of beneficiaries. There are well defined steps adopted in this system and role of beneficiaries, field functionaries and all other stakeholders is clearly defined.

ABPS is helping the genuine beneficiaries to get their due payment and is instrumental in curbing corruption by weeding out fake beneficiaries. Mahatma Gandhi NREGS has not adopted Aadhaar-enabled payment .This scheme has opted for Aadhaar Based Payment Bridge system.

India is set to achieve the highest number of cashless transactions globally, with digital transactions ensuring secure delivery of schemes. _EAM S. Jaishankar

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Speaking at the 'Raisina@Sydney' Business Breakfast, EAM S. Jaishankar claimed that India is set to achieve the highest number of cashless transactions globally, with digital transactions ensuring secure delivery of schemes. He highlighted, digital governance has become the primary means for socioeconomic delivery, which wouldn't have been possible without opening bank accounts for a vast number of people.

Cashless Transactions

In recent years, the use of cashless transactions has grown exponentially, with more people using digital methods to pay for goods and services. Cashless transactions refer to any type of transaction that does not involve the use of physical cash. Instead, electronic means such as credit or debit cards, mobile wallets, and online banking are used to make payments. The trend towards cashless transactions has been driven by several factors, including convenience, security, and increased access to technology.

Types of Cashless Transactions

There are several types of cashless transactions, including:

  1. Credit and Debit Cards: Credit and debit cards are the most common forms of cashless transactions. They are easy to use, and most merchants accept them.
  2. Mobile Payments: Mobile payments are becoming increasingly popular, and they involve using a smartphone to make payments. Mobile payments can be made using apps like Google Pay, Apple Pay, or Samsung Pay.
  3. Online Payments: Online payments allow users to pay for goods and services online. They are commonly used for e-commerce transactions.
  4. Contactless Payments: Contactless payments involve using a card or smartphone to make a payment without the need to swipe or insert the card. Instead, the card or smartphone is simply held close to a terminal, and the payment is processed.

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Benefits of Cashless Transactions

Cashless transactions have several benefits, including:

  1. Convenience: Cashless transactions are easy to use and can be completed quickly, making them convenient for both consumers and merchants.
  2. Security: Cashless transactions are more secure than cash transactions since there is no physical cash involved. This reduces the risk of theft or loss.
  3. Record-Keeping: Cashless transactions create a digital record of the transaction, making it easier for consumers to track their spending and for merchants to keep track of their sales.
  4. Increased Access: Cashless transactions can increase access to financial services, especially for people who may not have easy access to traditional banking services.

Challenges of Cashless Transactions

Despite the many benefits of cashless transactions, there are also some challenges, including:

  1. Digital Divide: Not everyone has access to the technology needed to use cashless transactions, which can create a digital divide.
  2. Security Concerns: Cashless transactions are vulnerable to security breaches, and there is always a risk of fraud or hacking.
  3. Fees: Some cashless transactions may come with fees that can add up over time.

As technology continues to advance, it is likely that we will see more people using cashless transactions in the future.

13-Feb-2023: RBI gives permission for NRIs and G-20 Countries to access UPI

RBI gives permission for G-20 countries and NRIs to access UPI for merchant payments/person to merchant (P2M) at select airports in India.

Banks and non-banks authorized to issue Prepaid Payment Instruments (PPIs) can issue rupee-denominated full-KYC PPIs to foreign nationals and NRIs visiting India. Conversion to Indian rupee can be carried out only by entities authorized to deal in foreign exchange under FEMA.

PPIs are payment instruments that facilitate the purchase of goods and services against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder, by cash, by debit to a bank account, or by credit card.