SBT to sponsor NeFMS under MGNREGA

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.

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.