## Policy Summary: Aadhaar-Based Payment System (ABPS) in MGNREGS
This document summarizes the Indian government's implementation of the Aadhaar-Based Payment System (ABPS) within the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), effective January 1, 2024. The implementation aims to ensure timely wage payments, address issues arising from frequent changes in beneficiary bank accounts, improve transparency and accountability, and reduce leakage and corruption through Aadhaar authentication.
The ABPS mandates wage payments via the Aadhar Payment Bridge System. In cases of payment failure through APBS, the National Automated Clearing House (NACH) provides an alternative account-based payment route.
As of August 12, 2025, 99.65% of the 12.12 crore active MGNREGS workers have had their Aadhaar numbers seeded. The central government is actively monitoring states and union territories to achieve 100% Aadhaar seeding and APBS conversion within the NREGASoft system. The Ministry of Rural Development addresses issues flagged by stakeholders on a priority basis.
The Ministry regularly reviews the performance of the StatesUTs, including the implementation of APBS, through various mechanisms such as MidTerm Review, Common Review Mission, Labour Budget meetings, National Level monitoring, virtual conference meetings and field visits. Review and course correction are taken up depending on the need and requirements for effective implementation of the Scheme.
Key Entities Referenced
Mahatma Gandhi National Rural Employment Guarantee Scheme: A scheme also known as MGNREGS or Mahatma Gandhi NREGS, aims to enhance livelihood security of households in rural areas of India by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
Aadhaar-Based Payments System: A system also known as ABPS, utilizes the Aadhaar number for wage payments under the MGNREGS scheme.
Ministry of Rural Development: The Indian government ministry responsible for rural development.
Shri Y S Avinash Reddy: A member of Lok Sabha who raised a question about the Aadhaar-Based Payments System in MGNREGS.
Shri Kamlesh Paswan: Minister of State in the Ministry of Rural Development, who provided the answer to the Lok Sabha question.
Aadhar Payment Bridge System: A system also known as APBS, used for direct transfer of benefits and wages to beneficiaries' Aadhaar-linked bank accounts.
National Automated Clearing House: An alternative payment route to APBS using account-based payments.
NREGASoft: Software used for monitoring Aadhaar Seeding and APBS conversion.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO. 3739
ANSWERED ON 12/08/2025
AADHAAR-BASED PAYMENTS SYSTEM IN MGNREGS
3739. Shri Y S Avinash Reddy:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether the Government has assessed the Aadhaar-Based
Payments System (ABPS) introduced in payment of wages under
the Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) from 1st January, 2024;
(b) whether the Government has taken note that many complaints
are being received after the introduction of ABPS in MGNREGS
wage payments due to a mismatch between the details of the
job cards and their Aadhaar card details;
(c) if so, the details thereof; and
(d) the remedial steps taken by the Government to address the
concerns of the workers?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(SHRI KAMLESH PASWAN)
(a) to (d): 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 Payment Bridge System (APBS). This has been
made mandatory with effect from 1st 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
Page 1 of 2available 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.
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