**The e-KYC Hurdle: Who Stands to Lose?**

Title: Rural Employment Overhaul: How VB-G RAM G’s e-KYC Push Tests MGNREGA’s Legacy Summary Box Two months after the launch of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G RAM G, only 71% of registered workers have completed e-KYC verification—a prerequisite for accessing jobs under the new scheme. While 94.88% of "active workers" (those employed in the last three years) are verified, 57 lakh workers remain unverified, risking exclusion. The transition from the Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA) raises questions about digital barriers, constitutional entitlements, and the trade-off between fraud prevention and universal access. --- The VB-G RAM G, positioned as an upgrade to MGNREGA, mandates Aadhaar-based e-KYC for job cardholders—a shift from the earlier regime where physical verification sufficed. The 71% verification rate masks stark disparities: while active workers (who used MGNREGA in the past three years) show 94.88% compliance, the remaining 57 lakh unverified workers are predominantly marginalised groups—migrant labourers, the elderly, and those without digital literacy or Aadhaar linkage. The Ministry’s assurance that "no eligible worker will be left behind" clashes with the de facto exclusion of those unable to navigate the e-KYC process. The constitutional underpinning of MGNREGA—rooted in Article 41 (right to work) and reinforced by the Maneka Gandhi Judgment’s expansion of Article 21 (right to livelihood)—creates a legal obligation for the state to ensure uninterrupted access. Yet, the e-KYC mandate introduces a procedural barrier that risks violating this guarantee. The Aadhaar Act 2016, while enabling digital authentication, does not override statutory entitlements like MGNREGA’s 100-day work guarantee. - 71%: Overall e-KYC verification rate among registered workers under VB-G RAM G - 94.88%: Verification rate among "active workers" (employed in last 3 years) - 57 lakh: Unverified workers at risk of exclusion - Article 41: Constitutional directive for the state to secure the right to work - Section 3(1) of MGNREGA: Guarantees 100 days of wage employment to rural households :::callout Did You Know? The MGNREGA wage payment system was designed to be self-targeting—workers’ willingness to perform unskilled manual labour at statutory wages acted as a natural filter for need. The e-KYC mandate reverses this logic, shifting the burden of proof from the state to the citizen. ::: --- ### Digital Divide vs. Fraud Prevention: The Trade-Off The government’s push for e-KYC stems from two decades of leakage concerns in MGNREGA, where ghost workers, duplicate job cards, and payment diversions siphoned off funds. A 2022 CAG audit flagged ₹1,100 crore in irregularities, including fake job cards and inflated muster rolls. The VB-G RAM G frames e-KYC as a fraud-mitigation tool, but critics argue it disproportionately affects the most vulnerable: - Migrant workers (who lack local Aadhaar linkage) - Elderly workers (who struggle with biometric authentication) - Women in conservative households (who may not possess independent identity documents) The Socio-Economic Caste Census 2011 data reveals that 25.7% of rural households lack any adult member with 10+ years of education—a proxy for digital literacy. For these groups, the cost of verification (travel to centres, lost wages) often exceeds the benefit of potential employment. - ₹1,100 crore: Irregularities flagged in MGNREGA by CAG (2022) - 25.7%: Rural households with no adult educated beyond primary school (SECC 2011) - 33%: MGNREGA’s statutory reservation for women workers (often the first to be excluded by digital barriers) - Direct Benefit Transfer (DBT): The payment system VB-G RAM G relies on, which requires Aadhaar-seeded bank accounts --- ### Legal Loopholes and the "No Worker Left Behind" Promise The Ministry’s exemption clause—allowing non-e-KYC workers to access jobs "in exceptional cases"—creates implementation ambiguity. Unlike MGNREGA’s universal guarantee, VB-G RAM G’s conditional access risks arbitrary exclusions at the block level, where local officials determine what qualifies as "exceptional." The National Rural Employment Guarantee (Amendment) Rules 2023, notified in September 2023, already tightened job card issuance norms, requiring household surveys and gram sabha approvals. The VB-G RAM G’s e-KYC layer adds another bureaucratic filter, potentially violating the Indira Sawhney Judgment’s principle that entitlements cannot be made contingent on procedural hurdles that disproportionately affect marginalised groups. - September 2023: Notification of stricter MGNREGA job card rules - Gram Sabha: Local body now required to approve job card applications under amended rules - Indira Sawhney Judgment (1992): Landmark case on equity in state benefits - Block Development Officers (BDOs): Key implementers with discretionary power over "exceptions" --- ### The Bigger Picture: From Entitlement to Conditional Welfare? The VB-G RAM G’s design reflects a broader shift in India’s social welfare architecture—from rights-based guarantees (MGNREGA, National Food Security Act 2013) to conditional, digitally mediated benefits. While JAM Trinity (Jan Dhan-Aadhaar-Mobile) has improved targeting efficiency, it has also raised exclusion risks. The World Bank’s 2022 India Development Update noted that 10-15% of eligible beneficiaries are excluded from DBT-linked schemes due to authentication failures. For MGNREGA, which served as a counter-cyclical economic stabiliser (e.g., 40% higher demand during COVID-19), the e-KYC mandate could dampen demand just as rural distress resurfaces. With agricultural growth at 1.4% (Q1 2024) and rural wages stagnant, the timing of this transition is economically fraught. - 10-15%: Typical exclusion rate in DBT schemes due to authentication issues (World Bank 2022) - 40%: Surge in MGNREGA demand during COVID-19 (2020-21) - 1.4%: Agricultural GDP growth in Q1 2024 (lowest in 5 years) - Counter-cyclical spending: MGNREGA’s role in boosting rural demand during downturns --- ### Way Forward: Balancing Fraud Control and Inclusion Three steps could mitigate exclusion without compromising transparency: 1. Offline Verification Bridges: Allow gram panchayats to verify identities via physical documents (e.g., voter IDs, ration cards) for a transition period. 2. Mobile e-KYC Camps: Deploy Aadhaar enrolment vans in remote blocks, as done under Ayushman Bharat. 3. Auto-Enrolment for Active Workers: Grandfather in workers with 3+ years of MGNREGA work history, using existing data to pre-verify their credentials. The VB-G RAM G’s success hinges on whether it retains MGNREGA’s inclusive spirit while fixing its leakages.