No loan recovery from NREGA wages, Haryana warns banks

Chandigarh, Oct 12 (Calcutta Tube) The Haryana government Monday warned banks against recovering outstanding loans from the wages earned by people under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Haryana Financial Commissioner and Principal Secretary (panchayat and development department) P Raghavendra Rao said that banks, at their own level, could not recover their loan amount out of the monies received by them (banks) for payment as wages to those employed under MGNREGA.

Rao said that strict action would be taken against those bank officers who were found recovering loan amount from the wages received under MGNREGA.

He asked the administrative officers to ensure that there were no deduction from the amount received through banks by the beneficiaries under MGNREGA and other schemes.

‘The smart card holder should not face any difficulty in receiving amount through smart card,’ Rao said.

The nationwide MGNREGA scheme is aimed at providing at least 100 days of employment to the rural poor to enable them to earn their livelihood and ensure equitable development in the country.

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