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SBT to sponsor NeFMS under MGNREGA

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Union cabinet has instigated an electronic fund management system for direct and faster release of wages under the Mahatma Gandhi National Rural Employment Guarantee (MNREGA) scheme.

  • Centre has introduced this scheme in the country for the first time and picked up Kerala for the pilot project.
  • Thiruvananthapuram headquartered State Bank of Travancore (SBT) is the sponsor bank for this scheme.

National Electronic Fund Management System (NeFMS)Features & benefits of scheme
The National Electronic Fund Management System (NeFMS) will enable direct and immediate credit of wages into the accounts of the 21 lakh MNREGA beneficiaries of Kerala.

  • After due verification of work and muster rolls, the Grama Panchayat and blocks generates an electronic fund transfer order to transfer the wages directly into the beneficiary accounts.
  • This pristine platform ensures transfer of wages to the worker’s accounts within 48 hours of the issue of the order.
  • This pilot would enable Grama panchayats to take up work as per the agreed labour budget without having to wait for the release of funds.
  • The benefit to the Centre is that it would need to release funds only on the basis of actual progress of work and without delay.

Keys

  • The total wage component of the MNREGA payout is about ₹2,300 crore in Kerala.
  • The number of beneficiaries of MNERGA in Kerala is higher than other States.