MGNREGA PAYMENTS UNDER MGNREGA THROUGH ELECTRONIC FUND MANAGEMENT SYSTEM e-FMS/ DBT

DBT through e-FMS: INTRODUCTION A National Committee (with PM as chairperson) has been constituted to coordinate action for introduction of DBT to individuals under various government schemes (Notification PMO dated 25 /10/2012). Under MGNREGA no. of districts identified for DBT are: PHASE I: 46 districts (out of 51). PHASE II: 63 new districts have been identified (Out of 70).

e:FMS: “Right amount” in “Right account” in time Earlier / current Practice Benefits of e-FMS/ DBT Wage lists along with cheques sent to banks/ PO Physical movement & cheque clearance delays wage payment Large no.of A/cs required to be maintained Large Amounts blocked Uneven balances with different entities Data entry an issue Better management of funds: Reduction in number of a/cs of stakeholders Avoids parking of fund Avoids huge OB Authentic & real time information on MIS Reduces payment cycle time Enhances delivery of entitlements Improves Accountability

e-FMS: Activity Flow Registration of Worker Registration of Worker Issuance of Job cards Issuance of Job cards Demand for work Demand for work Work Allocation Work Allocation Preparation of MB By Engineer Daily Attendance Generation of E-Muster Preparation of Wage slip & Wage list Preparation of FTO debiting Account wise Material List preparation Material Procurement First Signatory Second Signatory Admin Expenditure Admin Expen. List preparation Copy of FTO saved on State Archive FTO sent to Financial Institution

Direct benefit transfer in MGNREGA through e-FMS for Banks NREGAsoft -Data entry of musterrolls, material & admn. Exp. Bills -Generation of wage list,material list and admn exp. list Direct benefit transfer in MGNREGA through e-FMS for Banks Bank having Nodal agency account Bank 1 Bank 2 Integration of response in NREGASoft Bank 3 ….. Wage List FTO FTO SFTP server Response Accounts of workers First signatory (panchayat secy/ accountant Generate FTO and digitally sign Second signatory (Pradhan/ BDO Approve FTO, digitally sign

Direct benefit transfer in MGNREGA through e-FMS for Post offices NREGAsoft -Data entry of musterrolls, material & admn. Exp. Bills -Generation of wage list,material list and admn exp. list Integration of response in NREGASoft Consolidated FTO HO 1 A/C Bank having Nodal agency account HO 2 A/C Wage List FTO FTO SFTP server HO 3 A/C ….. Detailed FTO First signatory (panchayat secy/ accountant Generate FTO and digitally sign Second signatory (Pradhan/ BDO Approve FTO, digitally sign Response CEPT mysore Response HO /SO1 Response HO /SO2 HO /SO3 ….. Accounts of workers in

Integration with Banks/POs Integration with bank in states/ UTs United Bank of India (West Bengal) State Bank of India (GJ,MP, TR, OR, MH, Pud.) State bank of Bikaner and Jaipur (RJ) State bank of Mysore (KR) Union bank of India (RJ) Central Bank of India (MP, MH) Maharashtra Bank (MH) Bank of Baroda (RJ) Bank of India (MP, JH) Oriental Bank of Commerce (RJ) Axis bank (CH) Punjab National bank (HR, PB, UP, UK) Kotak Mahendra (in process) Integration with post offices: Gujarat, MP, Orissa, MH, Rajasthan, Chhattisgarh, Haryana, Jharkhand, Kerala

Strategy for roll out Nature of payments - Wages - Material bills Locations -GPs -Blocks -Line Deptts Financial Institutions - Banks on CBS - Post - Cooperative Banks Nature of payments - Wages - Material bills - Admn Expenses

Strategy and timeline for implementing e-FMS by 1st Dec, 13 SN ACTIVITY TIMELINE I verification & Freezing of Accounts 15th Sep to 15th Oct, 2013 II Identification of Authorized person 15th Sep to 30th Sep, 2013 III DSC issuance and enrolment in NREGASoft. IV Complete conversion to e-FMS for all locations, Financial Institutions & types of payments. 1st Dec, 2013

Steps to be taken 1. Validation/ freezing of accounts 2 Steps to be taken 1. Validation/ freezing of accounts 2. Issue of DSCs 3. Capacity Building 4. FTO generation 5. Aadhaar Seeding into NREGASoft 6. FTO for Bank and Post Offices. 7. FTO for Wage and material payments.

Kindly Contact Any Time… RITESH SAXENA MoRD (MGNREGA) New Delhi Email: ritesh_saxena123@yahoo.com