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. But
even with its progressive vision, it has been vehemently criticized on various grounds. The effectiveness of introducing the banking system in
providing the wages to the beneficiaries is one such issue that is continuously debated. After 2008,it was decided to pay the wages through
banks and post offices to the beneficiaries. In Tamil Nadu, a panchayat in each block has been selected as a pilot village by the introduction of
the banking system in order to know its effectiveness. This study attempts to analyze the same and draw presumption 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 and also by direct observation.
Tools of Data Collection
Prepared questionnaires were used for collecting the data from the stakeholders.

Data analysis and Interpretation

Block name:Thiruvallur
Date:

Banking panchayat beneficiaries

Name of the village: Kozambakkam panchayat
:
Involvement of Gram Panchayat in the banking system
The Panchayat officials helped most of the beneficiaries in opening their zero balance accounts.But some of them had created their account and
then joined the NREGA programme.No training was given by the panchayat to the beneficiaries regarding the banking procedures.
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 because at
present they have travel a long distance to reach the bank.. They also feel that through direct payment they will get their wages on time and is
easy to access.
Awareness level of beneficiaries about banking system
Illiterate and old people feel it complex to understand the banking procedures.Many of the times the facilitators help them in doing the banking
procedures .They were not provided with any of the orientation classes regarding the banking procedures from the panchayat.
Potentials and threats in implementing banking system in the Panchayat
Potentials: It can help the beneficiaries in improving their saving habits and is secure.
Threats: The bank is 8 kms away from the panchayat. The beneficiaries have to incur the travel expenses, which comes to Rs 30 to 40 by auto
and not available bus 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.
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:26 Veppampattu

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 is easy to access.
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.
Potentials and threats in implementing banking system in the Panchayat
Potentials: It can help the beneficiaries in improving their saving habits
Threats: The bank is 8 kms away from the panchayat. The beneficiaries have to incur the travel expenses, which comes to Rs 30 to 40 by auto
and not available bus 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.
BCM and acceptability of banking system
The beneficiaries accepted the idea of BCM when it was explained to them.

2) Names of the village: 25 Veppampattu

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

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
dont knew how to deposit and withdraw money from the bank.

Potentials and threats in implementing banking system in the Panchayat

Potentials:May have some savings.
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.