The MGNREGS Banking Audit Report of Thiruvallur District

Introduction
The MGNREGS to make the payment of the wages to the beneficiaries in a more convenient and effective way has introduced the system of
linking banks to the scheme. In Tamilnadu the system of giving wages through the bank accounts of beneficiaries was introduced on a pilot
basis in one Panchayat of each block. To understand the positive and negative aspects of the banking system in the Panchayats where it was
implemented the AAUM Pvt has conducted an empirical study. The study was conducted in 13 blocks of Thiruvallur district. In each block 3
panchayats were selected that consist of one banking village and two non banking villages.
Method of Data Collection
The method used was personal interviews with the beneficiaries, Panchayat Presidents and BDOs using questionnaires and non- participant
observation.
Tools of Data Collection
The questionnaire was prepared in a way that it could bring out the opinion of the interviewees on the banking system and it gives opportunities
to suggest possible alternatives to the banking system.

Data analysis and Interpretation

Block name: Pallippett

Banking panchayat beneficiaries

Name of the village: Kelapuri Panchayat
Involvement of Gram Panchayat in the banking system
The Panchayat officials helped them to open the account.
.
Acceptability of the current method
They do not accept this banking system and they prefer direct wage payment because they need to travel a long distance to reach the bank and
recently a number of robberies happened in the area towards the women NREGA beneficiaries owing to lack of transportation facilities to reach
the bank.Also the illiterate people in the panchayat felt it difficult to understand the banking procedures.
Awareness level of beneficiaries about banking system
Most of the beneficiaries are not familiar with the banking procedures. They are not given any orientation from the panchayat regarding the
banking procedures. The old people were usually been assisted by the persons who are familiar with banking procedures.
Potentials and threats in implementing banking system in the Panchayat
It may increase their saving habits and should be secure. The need to travel a long distance to reach the bank,bank staffs are not approachable
BCM and acceptability of banking system
The beneficiaries accepted the idea of BCM when it was introduced to them.

Non-banking Panchayat Beneficiaries

Names of the villages: Ramasamudram, Nochili
Involvement of the panchayat in the wage payment
Panchayat adequately provides wages to the beneficiaries in the presence of payment committee
Acceptability of the current method
They dont have any complaints about the present system. Many of them want to continue the direct cash payment mechanism
Awareness level of beneficiaries about banking system
Some of the beneficiaries being the SHG leaders know how to transact money through the banking system but modt of the beneficiaries dont
know to transact money via banks. They were often helped by the people who know to transact money. But still they find it inconvenient
Potentials and threats in implementing banking system in the Panchayat
The beneficiaries of the panchayats dont have a correct idea of how to transact money through banking system and the benefits of getting
wages through the method. In the interviewers observation they were responding to the question that whether they prefer banking or direct cash
payment they were not having a solid preference.
BCM and acceptability of banking system
The change in their opinion is visible when the interviewer explained about the BCM model and they were very much receptive about the
banking method.