Though the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) had helped in making good progress in financial inclusion in the district, it was not free of several hurdles that prevented the working class from enjoying the resultant benefits fully.
A study on the implementation of the scheme in the district conducted by MG University’s School of International Relations and Politics pegged financial inclusion at 67.50 per cent in 20 out of the 84 grama panchayats, which were taken as sampling units. The conclusion was reached based on a cumulative analysis of 14 demand and supply side variables.
While the number of bank account holders had increased significantly since 2008, there were widespread complaints about the transaction environment due to indifference on the part of banking officials. Workers who responded to the opinion survey felt that bank officials were not comfortable about their collective visit to banks for withdrawal.
This had thrown up an idea of separate counter for MGNREGS-related transactions in banks.
Access to banking institutions and the cost of transportation were other major hurdles.
About 52 per cent workers had to travel miles to reach the bank that often led to additional burden in terms of transportation cost, besides loss of work for the day. While 97.67 per cent had no access to cheque facility, only 22 per cent had access to ATMs. Only 1.83 per cent visited banks once in a month. This made periodical checks of whether wages had been credited and verification of balance in accounts difficult.
Notwithstanding that, payment of wages through banks had been found to be beneficial and rewarding. It took banking services to the masses, provided incentives for saving and among other things helped to buy household items. Despite the indifference on the part of banking officials, 99.67 per cent hardly had any problem in opening bank accounts while 99.17 per cent personally withdrew money form their accounts.
Besides, financial inclusion instilled among the workforce awareness about the banking and its various services, problems associated with withdrawal and investments, provisions of loans and problems of repayments etc.
