Context:
A recent e-KYC verification drive under MGNREGA has raised serious concerns about worker exclusion, transparency, and access to entitlements. Data indicates a sharp rise in job card deletions coinciding with the push for mandatory electronic Know Your Customer (e-KYC), prompting questions about whether technology-led reforms are undermining social protection goals.
Key Highlights:
Surge in Worker Deletions
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Around 27 lakh MGNREGA workers were deleted between October 10 and November 14, 2025.
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This is nearly double the 15 lakh deletions recorded over the previous six months.
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The spike aligns with the Union government’s accelerated e-KYC verification drive.
Government’s Rationale for e-KYC
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e-KYC introduced to:
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Improve transparency and efficiency
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Eliminate duplicate or ineligible beneficiaries
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Strengthen service delivery under MGNREGA
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As of now, over 56% of active workers nationwide have completed e-KYC.
Correlation Between e-KYC and Exclusion
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Data suggests states with higher e-KYC completion — such as:
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Andhra Pradesh
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Tamil Nadu
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Chhattisgarh
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Also report higher job card deletions, raising concerns of systemic exclusion rather than targeted cleaning.
Earlier Technology-Based Reforms
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National Mobile Monitoring System (NMMS):
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Requires geo-tagged, time-stamped photographs of workers.
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Faced issues like:
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Poor internet connectivity
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Low digital literacy
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Wage delays and data manipulation
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Aadhaar Based Payment System (ABPS):
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Uses Aadhaar as a financial address.
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Excluded workers due to:
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Mismatch of demographic details
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Linking failures between Aadhaar and job cards
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Safeguards and Gaps
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Ministry issued an SOP in January 2025 for deletion of job cards:
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Mandatory public disclosure of names
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Opportunity for appeal
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However, the SOP does not adequately address the linkage between e-KYC and rising deletions.
Relevant Prelims Points:
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MGNREGA:
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Legal guarantee of 100 days of wage employment per rural household.
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e-KYC:
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Digital identity verification using Aadhaar-based authentication.
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ABPS:
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Aadhaar-linked Direct Benefit Transfer system.
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NMMS:
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App-based attendance monitoring under MGNREGA.
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Benefits of e-KYC:
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Reduces ghost beneficiaries
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Improves fiscal efficiency
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Enhances accountability
Challenges:
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Digital exclusion of vulnerable workers
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Errors in Aadhaar seeding
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Weak grievance redressal
Impact:
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Undermines right-based welfare framework
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Risks erosion of trust in flagship rural employment scheme
Relevant Mains Points:
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Facts & Provisions:
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MGNREGA as a demand-driven, rights-based scheme
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Use of Aadhaar under welfare delivery
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Keywords & Static Linkages:
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Digital governance, exclusion errors
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Welfare vs efficiency trade-off
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Social Justice Perspective:
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Impact on marginalised rural households
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Gendered and regional exclusion risks
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Way Forward:
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Make e-KYC non-exclusionary and facilitative
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Strengthen offline and assisted verification
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Improve appeal and grievance mechanisms
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Conduct independent audits of deletions
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Balance technology use with welfare objectives
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UPSC Relevance (GS-wise):
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GS 2: Governance, Welfare Schemes, Social Justice
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GS 3: Economy, Employment, Digital Public Infrastructure
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Prelims: MGNREGA, e-KYC, ABPS