The MGNREGS Banking Audit Report of Thiruvallur District

Introduction
MNREGA was introduced by the government of India with the aim of providing 100 days of unskilled manual labour to all the adult members
of a rural household. The alleviation of the condition of the rural people is its major concern. Most of the beneficiaries of the programme are
women and hence the programme also tries to bring about gender equality and regular income for the rural women in its own subtle way. . After
2008,it was decided to pay the wages through banks and post offices to the beneficiaries of all states.In Tamil Nadu,a panchayat in each block
has been selected as a pilot village by the introduction of the banking system in 2012 in order to know its effectiveness.This study attempts to
analyze the same and draw presumptions which can be adopted for the betterment of the programme.
Method of Data Collection
The methods of data collection included personal interviews with the stakeholders(the beneficiaries,panchayat officials and the BDO of the
respective block)and direct observation.
Tools of Data Collection
Prepared questionnaires were used for collecting the data from the stakeholders(the sample size included 5 beneficiaries from each
panchayat,the panchayat president and the BDO of the respective block)

Data analysis and Interpretation

Block name: Thiruvalangadu
Date:21-6-12

Banking panchayat beneficiaries

Name of the village: Nerthavada
Number of beneficiaries:64 beneficiaries(11men and 53 women)
Involvement of the panchayat in the wage payment
The panchayat has created zero balance accounts to the beneficiaries. No training about the banking procedures were given to the beneficiaries.
Wages are collected within 2-3 weeks since the beneficiaries find it difficult to go to the bank on a weekly basis.
Acceptability of the current method
The beneficiaries prefer direct payment as compared to the banking system. They feel that it is more convenient and reliable for them. They
also feel that through direct payment they will get their wages on time(in case of payment through bank accounts,the beneficiaries dont go to
the bank once a week )and unlike the banking system they dont have to follow complex procedures.
Awareness level of beneficiaries about banking system
Most of the beneficiaries are not aware of the banking procedures.Some are of the opinion that having a bank account could increase their
saving habits.
Potentials and threats in implementing banking system in the Panchayat
Potentials: It can help the beneficiaries in improving their saving habits and make them independent
Threats: The bank is 5 kms away from the panchayat. The beneficiaries have to incur the travel expenses, which comes to Rs 100 by auto and
buses are not available frequently in this route. Not all the beneficiaries know about the banking procedures.There are not enough staff in the
bank to attend to all the beneficiaries.
BCM and acceptability of banking system
The beneficiaries accepted the idea of BCM when it was explained to them.

Non-banking Panchayat Beneficiaries

1)Names of the village: Kurmavilasapuram
Number of beneficiaries:50 beneficiaries(10men and 40 women)
Involvement of the panchayat in the wage payment
The panchayat has created zero balance accounts to the beneficiaries. No training about the banking procedures were given to the beneficiaries.
Wages are paid correctly on every Tuesday.
Acceptability of the current method
The beneficiaries prefer direct payment as compared to the banking system. They feel that it is more convenient and reliable for them. They
also feel that through direct payment they will get their wages on time and unlike the banking system they dont have to follow complex
procedures.
Awareness level of beneficiaries about banking system
The beneficiaries are aware that there are some panchayats where the wages are given through the bank accounts. Most of the beneficiaries
knew how to deposit and withdraw money from the bank.Some are of the opinion that having a bank account could increase their saving habits.
Potentials and threats in implementing banking system in the Panchayat
Potentials: It can help the beneficiaries in improving their saving habits and make them independent
Threats: The bank is 10 kms away from the panchayat. The beneficiaries have to incur the travel expenses, which comes to Rs 100 by auto and
buses are not available frequently in this route. Not all the beneficiaries knew about the banking procedures and the non cooperative attitude of
the staff also contributed to their dislike to the banking system.They didnt know how much cash was there in their account.They also felt that
the banking system could not contribute to the development of the panchayat.
BCM and acceptability of banking system
The beneficiaries accepted the idea of BCM when it was explained to them.

2) Names of the village: Chinnammapettai

Number of beneficiaries: 60(all are women)
Involvement of the panchayat in the wage payment
The panchayat has created zero balance accounts to the beneficiaries. No training about the banking procedures were given to the beneficiaries.
Wages are paid correctly on every Tuesday.

Acceptability of the current method

The beneficiaries were satisfied with the current mode of payment.But some of them felt that having a bank account would increase their saving
habits and would be good for them.

Awareness level of beneficiaries about banking system

The beneficiaries are aware that there are some panchayats where the wages are given through the bank accounts. Most of the beneficiaries
were unaware of the banking procedures.They had high regard for the bank staff.They are required to have a minimum balance of Rs 500 in
their account.

Potentials and threats in implementing banking system in the Panchayat

Potentials: Some of them like banking because of the transportation problem and difficulty to understand the banking procedures.
Threats: The bank is 3 kms away from the panchayat. So many people are elder in the group thats why they believe to face difficulties while
receiving money through the bank. Not all the beneficiaries knew about the banking procedures and the non cooperative attitude of the staff
also contributed to their dislike to the banking system.

BCM and acceptability of banking system

The beneficiaries accepted the idea of BCM when it was explained to them.

BDO
The BDO was of the opinion that banking system is better if all the associated bottlenecks are cleared.Illiteracy that is prevalent
among the beneficiaries could be a hurdle in the implementation of the ATM provision.He wanted an increase in the number of
working days and felt that better results can be achieved by integrating agriculture with NREGA.He also recommended more
accounts in the nearest branches.He also suggested integrating building toilets and construction works with NREGA.