**Policy Summary: Aadhaar-Based Payment System (APBS) in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)**
**Policy Objective:** To ensure timely wage payments to beneficiaries under MGNREGS, address issues related to frequent changes in bank account numbers, and enhance transparency and accountability in wage distribution.
**Key Measure:** Implementation of the Aadhaar Payment Bridge System (APBS) made mandatory effective January 1, 2024. APBS aims to facilitate faster crediting of wages directly into beneficiaries' accounts, reduce leakage and corruption, and ensure payments reach verified beneficiaries.
**Alternative Payment Mechanism:** In cases where APBS fails, an alternative account-based payment system, the National Automated Clearing House (NACH), is available.
**Progress:** As of August 12, 2025, 99.65% Aadhaar seeding has been completed for 12.12 crore active workers. The central government is continuously monitoring States/UTs to achieve 100% Aadhaar seeding and APBS conversion in NREGASoft.
**Monitoring and Evaluation:** The Ministry of Rural Development continuously monitors and evaluates the performance of States/UTs, including APBS implementation, through mechanisms such as Mid-Term Reviews, Common Review Missions, Labour Budget meetings, National Level Monitoring, virtual conference meetings, and field visits. Review and course correction are undertaken based on identified needs and requirements.
**Source:** Information provided by the Minister of State for Rural Development, Shri Kamlesh Paswan, in a written reply in Lok Sabha.
Key Entities Referenced
Ministry of Rural Development: The Indian government ministry responsible for rural development programs.
Aadhaar-Based Payments System (APBS): A system for wage payments using the Aadhaar identification system, designed to improve transparency and reduce corruption.
Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS): An Indian labor law and social security measure that aims to guarantee the 'right to work'.
Aadhaar: A 12-digit unique identity number issued to all Indian residents.
National Automated Clearing House: An alternative route for wage payments in case of APBS failure.
NREGASoft: Software used for monitoring Aadhaar seeding and APBS conversion under Mahatma Gandhi NREGS.
Lok Sabha: The lower house of the Parliament of India.
Shri Kamlesh Paswan: Minister of State for Rural Development.
Ministry of Rural Development
Aadhaar-Based Payments System in Mahatma
Gandhi National Rural Employment Guarantee
Scheme
Posted On: 12 AUG 2025 6:00PM by PIB Delhi
To ensure timely payment of wages to the beneficiaries under Mahatma Gandhi National Rural Employment
Guarantee Scheme (Mahatma Gandhi NREGS) and to address the issues arising due to frequent changes in
bank account numbers of the beneficiaries and subsequent non-updation, it was decided to implement Aadhar
st
Payment Bridge System (APBS). This has been made mandatory with effect from 1 January 2024.
APBS helps in improving the transparency and accountability of wage distribution under the scheme
and ensure faster crediting of wages in the account of beneficiaries. Aadhar Authentication also
reduces leakage and corruption and ensures that only legitimate beneficiaries with verified identities
receive wages. In case of failure in payment through APBS, an alternative route to make payment is
available through account-based payment that is National Automated Clearing House. Currently,
against total of 12.12 crore active workers Aadhaar seeding of 99.65% have already been
completed. State/UTs are continuously being monitored by the Central Government for achieving
100% Aadhaar Seeding and APBS conversion in NREGASoft. As and when any issue is flagged by
the State/UT or any other stakeholders, the same is resolved on priority basis.
Monitoring and evaluation is a continuous process under Mahatma Gandhi National Rural Employment
Guarantee Scheme (Mahatma Gandhi NREGS). The Ministry regularly reviews the performance of the
States/UTs, including the implementation of APBS, through various mechanisms such as Mid-Term Review,
Common Review Mission, Labour Budget meetings, National Level monitoring, virtual conference meetings
and field visits. Depending on the need and requirements for effective implementation of the Scheme, review
and course correction are taken up.
This information was given by the Minister of State for Rural Development Shri Kamlesh Paswan in a written
reply in Lok Sabha today.
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RC/KSR/AR/3739
(Release ID: 2155685)