Context:
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The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has witnessed a sharp reduction of around 27 lakh registered workers within a short span.
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The decline coincides with the Central government’s push for mandatory e-KYC to clean beneficiary databases and curb misuse.
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The development has triggered concerns regarding exclusion of genuine workers and the overall effectiveness of the scheme as a rights-based employment guarantee.
Key Highlights:
Government Initiative / Policy Details
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e-KYC rollout mandated for MGNREGS workers to verify identity using Aadhaar-linked authentication.
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Introduced in the backdrop of alleged misuse of the National Mobile Monitoring System (NMMS).
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Aadhaar Based Payment System (ABPS) made mandatory in 2023 for wage disbursement.
Data, Targets, Schemes Mentioned
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27 lakh workers deleted from the MGNREGS database between October 10 and November 14.
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Lib Tech flagged the deletion rate as “unusual”, nearly double the deletions recorded in the previous six months.
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In FY 2025–26 (first six months):
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Net worker additions fell sharply.
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A single-month drop of about 17 lakh workers recorded.
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States with high e-KYC completion—Andhra Pradesh, Tamil Nadu, Chhattisgarh—reported maximum deletions.
Operational Mechanism
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e-KYC requires:
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Supervisors to upload worker photographs.
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Matching of images and details with Aadhaar data.
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Job card verification:
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A continuous process, with renewal every five years.
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Implemented by State governments and Gram Panchayats.
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Stakeholders Involved
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Union Ministry of Rural Development
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State governments & Panchayati Raj Institutions
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MGNREGS workers, especially:
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Rural poor
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Women
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Migrant and elderly workers
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Civil society organisations (e.g., Lib Tech)
Significance / Concerns
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Positive intent:
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Removal of duplicate and ineligible beneficiaries.
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Improved transparency and fiscal discipline.
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Major concerns:
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Technology-driven exclusion of genuine workers due to:
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Aadhaar mismatch
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Biometric failures
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Errors in photo uploads
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Reduced access to wage employment for vulnerable households.
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Potential weakening of MGNREGS as a demand-driven, rights-based scheme.
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UPSC Relevance (GS-wise):
GS 2 – Governance
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Digital governance in welfare schemes
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Centre–State coordination in implementation
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Accountability and grievance redressal mechanisms
GS 2 – Social Justice
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Right to work and livelihood security
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Inclusion vs exclusion errors in welfare delivery
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Impact of digitisation on marginalised groups
GS 3 – Economy
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Role of MGNREGS in rural employment and demand support
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Implications of declining worker base on rural economy
Prelims Focus:
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Objectives and features of MGNREGS
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e-KYC and ABPS
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Job card verification norms
Mains Orientation:
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Critically examine how digitisation in welfare schemes can lead to exclusion errors.
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Discuss safeguards needed to ensure inclusion, transparency, and accountability in MGNREGS.