Roll-out of e-FMS under MGNREGS in Odisha
Thursday, November 15, 2012
Roll-out of e-FMS under MGNREGS in Odisha
Report by OD bureau, Bhubaneswar: The greatest challenge under MGNREGS is timely payment of wages to the MGNREGS Labourers. Though payment of wages through bank accounts or Post Office accounts of the beneficiary has been made mandatory, due to some inherent problem in the banking and Postal system, delay in payment of wages arises.

This is a universal problem throughout the country. To overcome this problem Government of India piloted e-FMS System in four States that is Odisha, Gujarat, Karnataka and Rajasthan. The e-FMS will take care of MGNREGS Accounts opened in Banks. For Postal Account, the State is in the process of piloting the same.
In Odisha, MGNREGS is implemented through 6236 GPs, 314 Blocks and @5-10nos of Line Departments in 45000nos of villages. There are 62.02 lakhs of Job Card holders in Odisha. Out of that around 43% Job Card holders are having accounts in Post Offices and 57% Job Card holders are having accounts in banks.

The basic objective of e-FMS is
To reduce the turnaround time required for wage processing and payments,
Reduction of work load at different levels of implementing agencies,
Eliminating idle parking of fund at various levels,
Credit the accounts of MGNREGA workers seamlessly in T+1 day.
Fostering electronics governance at grass root level.
Reduce delay in payment.
To manage lakhs of beneficiary account electronically.
Eliminating middleman during payment of wages to MGNREGS workers.
Digital Signature Certificate (DSC) based authorization and authentication.
To do away with paper work thus “Green Environment”.
Reduce administrative costs.
Simplified book-keeping system.
Easy Audit and obtaining Utilization Certificate.
Greater security, Achieve Transparency & efficiency.
The e-FMS works in the following manner

Each implementing agency will have two signatories (for example at GP level the Panchayta Executive Officer is the 1st Signatory and the Sarapancha will be the 2nd Signatory) and they will have Digital Signature Certificate (DSC).
The wage paying Authority (GP/Block/Line Department) will generate Fund Transfer Order (FTO) out of e-Muster Roll and electronically passes the FTO which will travel to MoRD server to Nodal Bank located at State Head Quarter and then to RBI Server. From RBI Server it will be transmitted to the accounts of the beneficiary located through the State in different Commercial Banks and RRBs.
The crediting of wages to the accounts of MGNREGS workers is possible in T+1 day using e-FMS Module of NREG Soft and Regional Electronics Clearing System (RECS) of RBI.
The e-FMS Flow is as follows:

From implementing agency (GP/BLOCK/Line Deptt) to MoRD server in Delhi to SBI server to RBI REC server to beneficiary account.

For launching of e-FMS, the State of Odisha has taken a number of steps during the last one year. These are…
Sheragada Block of Ganjam District piloted e-FMS successfully during 2010-11.
After successful piloting in Sheragada Block, a number of deliberations were made by RBI, Bhubaneswar Circle and finance Department taking CGM, SBI, Bhubaneswar Circle, convenor SLBC, State Heads of commercial banks, RRBs for launching of e-FMS throughout the State.
Lastly, e-FMS was launched by Deputy Governor, RBI on 29th June, 2012 in Odisha for entire Ganjam, Gajapati, Mayurbhanj Districts and @one GP of one block of remaining 27 districts.
13562 Digital Signature Certificates (DSCs) were issued to field level functionaries.
a) Prescribed DSC application forms collected from the field functionaries. (2 Signatories of each Implementing Agency)
b) GP Level: PEO 1st and Sarapanch 2nd Signatory
c) Block Level: ABDO 1st ad BDO 2nd Signatory
d) DPC Level: APD (Finance) 1st and PD, DRDA 2nd Signatory
e) Line Department: 2 Signatories identified by each Line Deptt.
f) Deployed exclusive technical manpower and computers at SIRD and NIC, Bhubaneswar separately for 49 days from 23-07-2012 to 15-09-2012 for issuance of DSCs.
g) 60 District Level Officers have been trained as trainer of Trainees (ToT) / Master Trainers.

1st round of training for around 10,000 functionaries of GP, Block and District level including bankers, Line Department Officials and Sarapanches has been conducted during June 2012.
2nd round of training in cascading mode covering around 30,000 functionaries and Sarapanches has been conducted from 24th to 27th September 2012.
During 2012-13, Rs. 278.51 lakh wages has been credited in MGNREGA workers’ account processing 42804 transactions through e-FMS under MGNREGA till date.
Today i.e. 15th November, 2012 the State of Odisha is rolling out the e-FMS throughout the State. Odisha is the first State of the country able to Roll Out the e-FMS for payment of wages to MGNREGA workers having Bank Accounts.

This meeting was attended by Prasanna Kumar Acharya, Minister Finance and Public Enterprises, Kalpataru Das, Minister Panchayati Raj and Parliamentary Affairs, Deputy Governor RBI, Md. Harrun Rashid Khan, Principal Secretary Finance, Sri Jugal Kishore Mohapatra, Commissioner-cum-Secretary, Panchayati Raj Smt. Aparajita Sarangi and many high level Bank and Government Officials.
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