Home ECONOMY Mobile-based wage disbursement for MGNREGA workers in Odisha

Mobile-based wage disbursement for MGNREGA workers in Odisha


Reported by Sandeep Pattnaik

Bhubaneswar, Feb 27:

Axis Bank has partnered with Airtel M Commerce Services Ltd. (AMSL), a subsidiary of Airtel, a leading telecommunications company in the country, to work as the Business Correspondent and process the disbursements of wages to MGNREGA workers via Airtel money.Axis Bank

Airtel retailers will function as Customer Service Points [CSP] and ensure a seamless process especially, given Airtel’s wide retail presence across the State.

A memorandum of understanding (MoU) was signed to this effect between the department of Panchayati Raj, Government of Odisha and Axis Bank along with Airtel M Commerce Services Ltd (AMSL), for starting mobile based disbursement of wages to MGNRGEA job card holders in Odisha, on 22 February’ 2014.

This is the first of its kind project to be started on pilot basis in 2 blocks namely Ghatgaon in Keonjhar and Saintala in Bolangir district of the state by Axis bank.

The beneficiaries of this agreement shall be the NRGEA job card holders who will now get their daily wage payment directly through their mobile. They shall have to subscribe to the airtel money service to link their mobile number to their Axis Bank account. Based on the remittance made by the department to the beneficiary’s a/c on the due date, they will directly receive the amount on their mobile.

These customers will also receive alerts via SMS and voice message and will be able to easily withdraw cash from any nearby Airtel retail outlet by simply authorizing the transaction on their mobile.

For each withdrawal, beneficiary will receive a message on his mobile containing a secured PIN which they need to convey to the retailer who will in-turn complete the transaction and hand over the cash to the beneficiary.

The beneficiary will continue to earn savings bank interest for the funds parked in the said a/c. Beneficiary can also easily carry out deposits and remittances directly with their mobile.

“This is a unique model which will address the last mile solutions to reach out to beneficiary. We hope to replicate this model in other areas based on the feedback & response generated from this venture,” Director Special Projects, Shri NitinJawale in the department of Panchayati Raj  told OST.

“This one is the latest offering from the bank. I am hopeful that this model of banking will be highly useful since it works on any phone with low cost of operation. Going forward Axis Bank hopes to offer these solutions to many other states,” Debarchan Mishra, Regional Distribution Head (East) & Executive Vice-President, Axis Bank said