Are e-KYC norms excluding MGNREGA workers?

For Preliminary Examination:  Current events of national and international Significance

For Mains Examination:  GS II - Governance

Context:

The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) covers 26 crore registered workers across 2.69 lakh gram panchayats. Over the last six months, about 15 lakh workers were deleted. But in just one month, between October 10 and November 14 this year, they shot up to 27 lakh — nearly double the six-month total.

Read about:

Periodic Labour Force Survey (PLFS)

Right to Work

Key takeaways:

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare legislation enacted by the Indian government in 2005 with the aim of providing livelihood security to rural households.
• At its core, the Act guarantees the right to work: every rural household is legally entitled to demand up to 100 days of paid employment in a financial year. This employment must be provided by the government, and it must involve unskilled manual labour.
• By making employment a legal right rather than just a welfare provision, MGNREGA seeks to reduce rural poverty, prevent distress migration, and create durable assets that support long-term development.
• MGNREGA is demand-driven, meaning that work must be provided whenever a worker asks for it. If employment is not provided within fifteen days of demanding it, the worker becomes eligible for unemployment allowance, making it one of the few schemes in which the state is legally accountable to citizens.
• The programme is implemented primarily through Gram Panchayats, which identify suitable works, issue job cards, maintain records, and ensure transparency.
• This decentralised approach brings decision-making closer to local communities and allows projects to align with local needs—such as building rural roads, water conservation structures, ponds, drainage systems, or soil improvement works.
• The Act also places strong emphasis on inclusivity and social justice. It mandates that at least one-third of the workers must be women, and wages are paid directly to bank accounts to prevent leakages.
• By assuring a minimum level of income, MGNREGA acts as a safety net during times of drought, crop failure, inflation, or economic distress. It not only empowers rural households economically but also increases their bargaining power in the labour market, as they are no longer forced to accept exploitative wages.
• Overall, MGNREGA represents an important shift in India’s approach to rural development. Beyond merely providing temporary work, it strengthens local infrastructure, promotes environmental sustainability, and enhances social security in villages

Additional Information

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) currently covers around 26 crore registered workers spread across 2.69 lakh gram panchayats. In the past six months, nearly 15 lakh names were removed from the rolls.
• However, within just one month — from October 10 to November 14 — deletions rose sharply to 27 lakh, almost twice the total removed in the earlier half-year, and far higher than the 10.5 lakh new registrations during the same period.
• This sudden surge in deletions coincides with the Centre’s intensified effort to carry out e-KYC verification of workers, aimed at eliminating those considered ineligible.
• The Union Rural Development Ministry clarified that verifying the status of MGNREGA workers is an ongoing exercise, and the introduction of e-KYC is meant to enhance transparency, efficiency, and smooth delivery of services. According to the Ministry, over half of all active workers—around 56%—have completed e-KYC so far.
• The government has periodically introduced new verification measures to prevent benefits from reaching unauthorised persons.
• After nearly a year-long pilot beginning May 2022, it made digital attendance compulsory through the National Mobile Monitoring System (NMMS) app, requiring mates or supervisors to upload geotagged photos of workers twice daily.
• In January 2023, the Aadhaar-Based Payment System (ABPS) was also made mandatory. This system uses a worker’s Aadhaar number as the basis for wage payments, which requires linking their Aadhaar to both their job card and bank account.
• The Aadhaar must also be mapped in the National Payments Corporation of India (NPCI) database, along with the bank’s Institutional Identification Number (IIN), for the payment process to function smoothly

Follow Up Question

Mains

1. Recent reforms such as e-KYC verification, digital attendance, and the Aadhaar-Based Payment System (ABPS) have been introduced to enhance transparency in MGNREGA. Critically examine the implications of these measures on worker inclusion, service delivery, and the overall functioning of the scheme.

Is air pollution a South Asian crisis?

For Preliminary Examination:  Current events of national and international Significance like Air Pollution

For Mains Examination: GS III - Environment and Ecology

Context:

Delhi is in the spotlight once again for its consistently deteriorating AQI levels. And like every year there has only been a knee-jerk reaction to the problem, rather than a sustainable solution. The Commission for Air Quality Management has gradually switched from stage 1 and 2 to stage 3 of the Graded Response Action Plan, and advisories have been issued for citizens who battle serious health risks.

Read about:

Air Quality Management

World Health Organization (WHO) 

Key takeaways:

• Delhi has once again drawn national attention due to its persistently worsening air quality index (AQI). As has happened in previous years, responses to the crisis have been largely reactive rather than rooted in long-term planning.
• The Commission for Air Quality Management has escalated measures under the Graded Response Action Plan from stages 1 and 2 to stage 3, and citizens are being issued repeated health advisories.
• Yet, the situation demands a deeper understanding of how both natural and human-made factors converge to create this pollution emergency, which is influenced not only by local issues but also by developments beyond India’s borders.

Air Pollution Across South Asia

• In November 2024, parts of eastern and northern Pakistan and north India experienced a major pollution episode labelled the “2024 India-Pakistan Smog.” Cities such as Lahore and Delhi were competing for the unenviable position of having the worst air quality in the world, with satellite images showing thick “brown clouds” spread across the region.
• While Lahore initially reported the most severe AQI levels, Delhi’s air also deteriorated sharply due to shifting winds that carried pollutants across national boundaries.
• In 2025, the trend continues, with Delhi followed closely by Lahore.
• Bangladesh has also become part of this regional problem, as Dhaka frequently records AQI levels from moderate to very poor during the winter, as noted by the Atlantic Council.
• Similarly, Kathmandu in Nepal regularly experiences AQI levels ranging from moderate to unhealthy.

Underlying Causes

• According to Greenpeace’s 2023 World Air Quality Report, most of South Asia’s poor air quality stems from human activities such as emissions from industries and vehicles, as well as the burning of solid fuels and waste.
• Pollution across the Indo-Gangetic Plain and nearby regions also persists due to geographical factors. Despite political boundaries, the common topography of the region restricts natural air ventilation and traps pollutants, leading to widespread haze.
• Compounding this are political shortcomings, as governments across the region have struggled to address the crisis with adequate resolve or coordination.
• A 2023 World Bank report titled Air Pollution and Public Health in South Asia noted that nine of the ten most polluted cities in the world are located in this region, with the exceptions being countries like Sri Lanka, Maldives, and Bhutan, which are relatively shielded from cross-border pollution flows.
• The regional nature of the problem indicates that while immediate measures are important, long-term strategies—such as strong decarbonisation policies and deep reforms in agricultural and industrial systems—are essential for meaningful progress.
• Air pollution is closely tied to the broader model of development, which often harms the environment.
• A World Bank study estimates that India loses around 3% of its GDP due to the health costs and lost productivity associated with high AQI levels.
• Rapid growth in private vehicle ownership, weak public transport networks, limited support for walking and cycling infrastructure, and indiscriminate construction at the cost of urban green spaces have all contributed to deteriorating air quality.
• A 2023 UNEP report shows how unsustainable patterns of consumption and production fuel climate change, which in turn aggravates air pollution.
• The World Health Organization (WHO) therefore rightly notes that air pollution has far-reaching effects on life expectancy, public health, economic output, and environmental justice.
• These grim AQI numbers reflect poorly planned development, with experts warning that the problem is no longer limited to northern India—cities like Mumbai and others along the southeast coast are also likely to face worsening air quality in the near future

What can local bodies expect from the 16th FC?

For Preliminary Examination:  Current events of national and international Significance

For Mains Examination: GS III - Economy

Context:

On November 17, the 16th Finance Commission (FC) submitted its report to the President of India.

Read about:

16th Finance Commission (FC)

Panchayats, municipalities

Key takeaways:

On November 17, the 16th Finance Commission (FC) presented its report to the President of India.

What about panchayats and municipalities?

• A key expectation from the Commission is that it would propose ways to strengthen the financial position of panchayats and municipalities, as required under Article 280(3)(bb) and (c) of the Constitution.
• In most federal systems, local governments deliver crucial public services such as drinking water supply, sanitation, public health, rural roads, and upkeep of community infrastructure.
• To fund these functions, they are authorised to levy certain taxes—like property tax, advertisement tax—and collect non-tax revenues such as market fees or tolls. Yet, across States and Union Territories, their revenue sources are insufficient compared to their spending responsibilities, resulting in a sizeable fiscal gap.
• Following the 73rd and 74th Constitutional Amendments, State governments have the authority to allocate revenue powers and expenditure duties to various levels of rural and urban local bodies. Because each State exercises this power differently, the fiscal autonomy of panchayats and municipalities varies widely across the country.
• Ideally, the functions assigned to local governments should match the financial powers given to them. However, there is no dedicated list specifying the exact functions or revenue instruments for these bodies.
• The 11th and 12th Schedules list 29 subjects for panchayats and 18 for municipalities, but these lists are indicative rather than mandatory. Moreover, Union and State governments continue to design most schemes related to economic development and social justice, leaving local governments mainly in the role of implementers.
• States often transfer responsibilities to local bodies without offering adequate revenue powers or staffing support. Consequently, panchayats and municipalities suffer financial strain, which affects both their developmental role and day-to-day functioning.

What does the State Finance Commission (SFC) do?

• Every five years, each State sets up a State Finance Commission, which recommends how State revenues should be shared with local governments.
• SFCs may propose assigning revenue sources to local bodies, granting them a share of State revenues, providing conditional or unconditional grants, delegating civic functions and staff, and improving administrative systems.
• Although more than a hundred SFC reports have been produced, very few have been implemented effectively.
• Because of this, local governments remain heavily dependent on fiscal transfers from the Union government. The Constitution therefore directs the Union Finance Commission (UFC) to recommend how State finances should be supplemented to support local bodies.

What have earlier UFCs done?

• Six UFCs have so far had their recommendations implemented. Most were unable to estimate the real financial needs of local governments and instead provided lump-sum grants on an ad hoc basis.
• The 13th Finance Commission broke this trend by recommending that grants for local governments be fixed as a percentage of the divisible pool of Union taxes, ensuring protection against inflation and allowing local bodies to benefit from rising tax revenues.
• However, later Commissions reversed this approach and again recommended lump-sum grants. The 15th FC also continued this pattern.
• Another inconsistency relates to conditional grants. To promote administrative reforms in local bodies, the 13th, 14th and 15th UFCs split grants into basic (unconditional) and performance-based (conditional) components.
• But each Commission introduced a completely new set of conditions, disregarding the previous one.
• For example, the 13th FC prescribed six conditions, very few of which States could meet. The 14th FC discarded them and proposed new criteria, and the 15th FC introduced yet another set of requirements