In a letter to Ms. Jayalalithaa, he said Tamil Nadu could become a trend-setter in seamless transfer of funds through bank and postal accounts of workers and thereby deepen financial inclusion in the State.
Pointing out that Tamil Nadu was the only major State making wage payments to MGNREGS workers by cash, which was to the tune of about Rs.2215 crore to 76 lakh workers during 2010-11, he, however, wondered whether it was a good idea to continue with this practice.
The letter clarified that the Ministry had allowed cash payment in districts affected due to Left-wing extremism owing to the poor reach of banks and post offices. On the other hand, Tamil Nadu enjoys a good postal and banking network coupled with a robust administrative system in place, he argued.
He suggested that the State gradually shift the process of payment over a period, preferably over the next one year. The Centre has made MGNREGS wage payments through banks and post office bank accounts mandatory for transparency and ensuring that the payments were made only to the genuine workers.