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PAYMENT OF WAGES UNDER MGNREGA: STANDARD OPERATING PROCEDURE

1. Background:

The Government of India passed the National Rural Employment Guarantee Act, 2005

(NREGA, 2005) in September, 2005. The name of the Act was changed to “The Mahatma

Gandhi National Rural Employment Act” with effect from 2nd October 2009 vide gazette

notification dated 31st December 2009. The Act provides for legal guarantee of at least 100 days

wage employment in every financial year to a rural household whose adult member volunteers

to do unskilled manual work. The implementation of the Act calls for formulation of the Rural

Employment Guarantee Scheme by the State Governments.

2. Disbursal of wages through post offices

(a) Post offices have been entrusted to disburse wages to MGNREGA beneficiaries

through accounts. Such disbursal of wages can be done either through Workers’ wage

accounts specifically opened for MGNREGA or through POSB accounts.

(b) The Programme Officer/Additional Programme Officer (PO/APO) will provide

necessary assistance to wage earners through Gram Panchayat/ Panchayat Secretary

in approaching the Post Office located in the village for opening of accounts/ withdrawals

from accounts by introduction/witness, attestation of LTIs, photographs and job card etc.

Activists of Village/Gram Rozgar Sevak and Self Help Groups can also guide.

(c) PO/APO will provide specimen signatures of authorized signatories for

maintenance and use at SO/HO. PM/SPM will be the custodian of specimen signature of

authorized signatories. These offices will accept/process wage lists and cheques only

after satisfying themselves about genuineness of these documents.

(d) In case of Workers’ Wage account, (i) minimum balance is not required (ii)

cheque book will not be issued and (iii) these accounts will not be transferred from one

post office to another post office.

3. Opening of Worker’s Wage Accounts and POSB Accounts

(a) General

(i) Each PO/APO will prepare list of registered wage earners in each village and

arrange them BO-wise and SO-wise. Top of each list will have name of the village,

name of the BO, name of the SO with Pin Code and name of the HO with PIN Code.

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(ii) SPM will maintain liaison with the POs/APOs and ascertain approximate number

of accounts to be opened in the SO and also in the BOs under the SO and indent for

sufficient number of forms required for opening of accounts.

(iii) Workers’ Wage Accounts and Savings Bank accounts are governed by the

POSB Rules and other orders on the subject.

(iv) PO/APO will obtain account numbers of wage earners and get it incorporated in

the relevant NREGS records.

(v) The time frame for delivery of pass books will be 3 days from receipt of

documents at Post Offices.

(b) At BO : When any wage earner attends BO for opening of account, the BPM will

follow the following procedure:-

(i) BPM will help the wage earner in filling up the SB-3 and pay-in-slip. He will take

specimen signatures/thumb impression on two paper slips. He will ensure that the

wage earner has given copy of his Job card and three passport size photographs.

(ii) Number of the job card will be noted on the top of SB-3 application form in red

ink.

(iii) BPM will attest photocopy of Job Card and copy of address proof taken from

wage earner (if not already attested) after comparing with the original and attach with

SB-3. If any wage earner fails to provide copy of address proof, BPM can also issue

a residence proof as per proforma prescribed in Annexure F, if he knows the wage

earner personally.

(iv) In case of Workers’ Wage account, BPM will not compel the wage earner to

tender any money for opening of account.

(v) BPM will follow the same procedure for opening of Workers’ Wage account as

prescribed for opening of Savings Account except that separate POSB Journal will

be used for these accounts and in SS Book, separate pages will be allotted for such

accounts or if number of accounts is high, a separate SS Book will be used.

(vi) BPM will forward SB-3 alongwith Pay-in-Slip, SS Slip, SB-26 and KYC

documents including copy of Job Card to its Account Office on the date of receipt

itself with entry in BO Daily Account.

(vii)On receipt of passbook from the Account Office, BPM will follow the same

procedure as prescribed for Savings Account, Passbooks will be delivered by the

BPM to the account holder under acquittance.

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(c) At Account Office:

(i) If a wage earner attends Account Office to open Account, same procedure will be

followed as prescribed for BO except that account will be opened in AO (Account

Office) and passbook will be handed over to the wage earner on the spot.

(ii) When SB-3 is received from BO, SPM will see that all the required KYC

documents have been attached with SB-3 and follow the same procedure (such as

entries in long book, ledgers, connected records) as prescribed for normal savings

account.

(iii)Separate block of account number will be allotted by HO for workers’ wage

accounts. If the wage earner applies for opening of normal savings account, same

procedure will be followed as prescribed for opening normal savings account. The

account wil be opened in same block as used for normal savings accounts. In

addition, Job card number should be entered in the address field of Software so that

these accounts may be segregated through the Data Base Analyzer (DBA). SPM will

open the account on the date of receipt of the application. Passbook will be prepared

and sent to BO duly entered in the BO Slip.

(iv) SPM will note the account number against the name of each wage earner in the

list received from PO/APO and return one copy to PO/APO under acquittance. The

acknowledged copy of list should be kept in the guard file serially numbered in

chronological order under the custody of SPM.

(v)SB-3 along with KYC documents will be sent to HO duly entered in the SO daily

Account.

(d) At HO :

(i) In case of BOs under HO, same procedure will be followed as prescribed for

Account Office.

(ii) In SBSO, when SB-3 along with KYC documents are received, workers’ wage

accounts will be opened in MGNREGA module. POSB accounts will be opened in

Sanchaya Post.

4. Availability of fund:- Post offices will disburse wages only on availability of

sufficient funds from State government authorities/disbursing agencies. These agencies can

make available these funds either in the form of advance rolling fund or through bank

instruments like cheque and bank draft or through electronic transfer of funds.

(a) Rolling Fund : Rolling fund means a lump sum amount deposited time to time in

advance by the State government authorities/ disbursing agency to meet liabilities

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against the wage list likely to be produced at HO / SO. It is deposited to avoid transit

time and the time required for clearance of cheque.

(i) State government authorities / disbursing agency will provide an amount

equal to the approximate wages payable in a month in the district deposited in

the district headquarter HO. The Divisional Nodal Officer, who will be nominated

by Divisional Head will review the position every quarter and will arrive at the

latest average amount to be kept as one time deposit and inform State

government authorities / disbursing agency to replenish the rolling fund to the

extent required.

(ii) The advance deposit in the shape of rolling fund will only be accepted in

HO. No SO will accept such advance even if it has its account in local Bank. In

case of availability of advance rolling fund at HO, the Post Master will work out

the extent upto which wages can be disbursed by SOs in a month without

confirmation from the HO on the basis of amount disbursed during the previous

month and intimate its SOs keeping required amount with HOs for accounts

standing at HO and its BOs. This information will be exchanged through SO slip

every month.

(iii) Copies of Wage lists may be accepted at SO/HO.

(iv) Any one of the following two procedures may be followed by a HO:

(aa) PO/APO will issue a consolidated cheque towards wages along

with wage list and hand it over to the SPM/PM. After exercising necessary

checks viz (i) the amount of cheque (A/C Payee only) agrees with the

total of wage list amount and consolidated list, (ii) cheque contains

signature of the authorized signatory and is not post dated, (iii) is issued

in favour of Postmaster HO, and (iv) does not contain any

alterations/corrections, one copy of the list will be date stamped and

returned to PO/APO. Since rolling fund is available, as described in 5(d),

wage payment will be started and made without waiting for clearance of

cheque. If wage list and cheques are received at SO, the SPM will send

these cheques along with relevant wage lists to HO for further necessary

action. The HO will remit the cheques to bank, obtain credit and

replenish the rolling fund. Under no circumstances, the rolling fund

available with HO should be less than the wages paid to the wage

earners. The availability of the rolling fund will be monitored as described

in 5(d).

(ab) No cheque is issued by PO/APO along with the wage list. Unlike

the fund transfer method mentioned in 4(a)(iv) (aa) above, in this case,

rolling fund depletes with payment of each wage bill and is required to be

replenished regularly. Based on the LOTs forwarded by SPMs (in respect

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of daily wage disbursement by the SO and its BOs), the HO will maintain

a register as per Annexure G. The register will be maintained by PA and

will be checked by Postmaster. Wage payment will be started and made

to extent of the availability of fund. The availability of the rolling fund will

be monitored as described in 5(e).

(b) Bank Instruments: When the PO/APO does not deposit rolling fund in HO and

present bank instrument of the actual amount of wages, wage list along with bank

instruments will be accepted at HO/SO. In case of receipt at SO, the SPM will send two

copies of the list and the bank instrument to the HO for necessary action. After

realization of the bank instrument, HO will inform SO through SO slip for making

payment.

(c) Electronic Transfer of Fund : The process flow for electronic transfer of fund is

at Annexure-A. HO will authorize credit into individual wage/SB accounts only after

satisfying about the receipt of credit into Postmaster Government Account held in bank.

Receipt and distribution of wage lists will be the same as in case of receipt of funds

through rolling fund/bank instruments. In other words, hard copies of the wage lists will

be submitted by the PO/APO at the HO/SO level, even if the fund is transferred online

and the wage lists data is shared electronically.

(d) The Divisional Head/Divisional Nodal Officer and the Postmaster concerned will

keep a close watch over remittance of all cheques to the bank and crediting of the

proceeds into the government account held by the HO in the bank without any delay.

5. Receipt of wage lists:

(a) PO/APO will prepare

(i) Village wise wage list for particular week/fortnight duly arranging them BO

wise and SO wise. Each list will contain (aa) name of the village (ab) name of

the wage earner, (ac) account number, (ad) job card number, and (ae) amount of

the wage to be credit in the account.

(ii) SO wise consolidated statement indicating (aa) name of the SO, (ab)

number of accounts, (ac) amount to be credited, and (ad) total amount for the

SO.

(b) PO/APO will make 5 copies of wage lists and send the same to SO/HO along

with consolidated statement under intimation to the payee wage earners.

(c) PM/SPM will keep a close watch over receipt of weekly/fortnightly wage list and

the cheques for the wage amount and on availability of funds ensure immediate credit of

wage amount into accounts of individual wage earners.

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Note:-PO/APO will make sure that Wage Slips are issued to all wage earners on the

basis of Wage Lists issued to post offices. Post Office will make payment only after

verifying the amount entered in the wage slip.

(d) When advance rolling fund is available with HO and cheque is received

with wage lists

(i) PO/APO will hand over a lump sum cheque for the consolidated amount of wage

list along with wage lists and consolidated statement to SO/HO

(ii) PM/SPM will exercise necessary checks viz. (i) the amount of cheque (A/C

Payee only) agrees with the total of wage list amount and consolidated list, (ii)

cheque contains signature of the authorized signatory and is not post dated, (iii)

is issued in favour of Postmaster HO, and (iv) and does not contain any

alterations/corrections.

(iii) After scrutiny of cheque and wage lists, PM/SPM will return one copy of wage list

to PO/APO as acknowledgement for having received the list. In case of receipt at

HO, the PM will retain one copy for its office and forward three copies to SO. In

case of receipt at SO, the SPM will retain one copy for its office and forward two

copies of the list to the office of payment viz BO and one copy along with the

cheque to HO.

(iv) Postmaster will maintain a register of rolling fund in the prescribed format

(Annexure-B) and keep a close watch over availability of sufficient fund for

payment of wages. On clearance of cheques, the rolling fund will be replenished

with the amount of cheque. If sufficient rolling fund is not available, he will take

action to get the cheque from State authorities/ disbursing agency and also

inform the Divisional Nodal Officer.

(e) When advance rolling fund is available with HO and cheque is not received

with wage lists

(i) PO/APO will hand over wage lists and consolidated statement to SO/HO

(ii) After scrutiny of wage lists, the concerned supervisor will put his signature, date

and stamp. PM/SPM will return one copy of wage list to PO/APO as

acknowledgement for having received the list. In case of receipt at HO, the PM

will retain one copy for its office and forward three copies to SO. In case of

receipt at SO, the SPM will retain one copy for its office and forward two copies

of the list to the office of payment viz BO and one copy along with the cheque to

HO.

(iii) Postmaster will maintain a register of rolling fund as mentioned in Annexure G

and keep a close watch over availability of sufficient fund for payment of wages

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through SOs and BOs. If sufficient rolling fund is not available, he will take action

to get the cheque from State government authorities/disbursing agency and also

inform Divisional Nodal Officer.

(f) When rolling fund is not available and cheque is presented for the actual

amount of wage lists,

(i) PO/APO will hand over a lump sum cheque for the consolidated amount of wage

list along with wage lists and consolidated statement to HO/SO.

(ii) PM/SPMwill exercise necessary checks viz. (i) the amount of cheque (A/C

Payee only) agrees with the total of wage list and consolidated list, (ii) cheque

contains signature of the authorized signatory and is not post dated, (iii) is issued

in favour of Postmaster HO, and (iv) and does not contain any

alterations/corrections.

(iii) After scrutiny of cheque and wage lists, PM/SPM will return one copy of each list

duly signed and date stamped to PO/APO as acknowledgement for having

received the list.

(iv) On clearance of cheques, the amount of cheque will be accounted for and HO

will retain the second copy of wage list for posting in ledgers. Date of clearance

of cheque will be the date of deposit while entering deposit entries in ledger

cards of wage earners. In case of receipt at HO the HO will send the remaining 3

copies to SO/BO along with consolidated statement, noting the date of clearance

of cheque, signature of postmaster with SB date stamp entered in SB slip

through SO/BO slips as part-II intimation.

(g) When fund and wage lists are received electronically: The process flow is at

Annexure ‘A’.

(h) When wage bills are received electronically but fund is made available in

the form of advance rolling fund / bank instruments: The process flow is at

Annexure ‘A’.

6. Credit into beneficiary accounts: Accounts of beneficiaries (workers’ wage account or

savings bank account) will be credited only on receipt of the wage list and the availability of

fund.

(a) No deposit other than NREGS will be made in the Workers’ Wage account.

(b) If advance rolling fund is available, on receipt of wage list, accounts of

beneficiaries will be credited to the extent of the availability of advance rolling fund.

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(c) Disbursing agency may also make available funds through bank instruments

even though an advance rolling fund is already made available at the Head Post Office.

As described in para 6(b) above, accounts of beneficiaries will be credited to the extent

of the availability of advance rolling fund and the fund will be replenished on realization

of bank instruments.

(d) In case of receipt of funds through bank instruments and advance rolling fund not

being available, accounts of beneficiaries will be credited only after the realization of

bank instruments.

(e) In case of receipt of the copy of the wage bill electronically, HO will satisfy

availability of funds before authorizing credit of wage earner accounts in ledgers. The

process flow for movement of the copy of wage lists electronically is at Annexure A.

(f) Immediately on receipt of the copies of the wage list in the BO, the BPM will

(i) Check the wage list and will allot serial number (financial year wise) to

wage list. He will keep one copy in the guard file and display the second copy on

the notice board.

(ii) maintain separate BO SB journal for NREGS transactions.

(iii) make one consolidated entry of each wage list as deposit in the separate

BO SB NREGS journal in red ink, mentioning the total number of transactions,

amount and serial numbers of the wage list as allotted in the guard file such as

“DEPOSIT MADE ON__________(date of clearance of cheque)

AT_______________________________________ HO, TOTAL AMOUNT

Rs___________________________________________________IN RESPECT

OF________________WAGE EARNERS OF WAGE LIST

NO_____________(Allotted in Guard File of BO) BEING NON CASH

TRANSACTIONS FOR THE BO. The amount should not be included in the SB

deposits made at the BO.

(iv) make remark in BO Daily Account of the day acknowledging the wage list

and date wise cash requirement, if it is not possible to make payment in one day.

7. Cash-flow: Divisional Heads and the Nodal Officers at Divisional Level are responsible

for arranging sufficient cash to meet the requirements of the SOs and the BOs under his

jurisdiction Unlike the normal SB accounts, it is expected that most of the amount credited under

this scheme will be withdrawn on the same day of deposit or on the next day.

(a) PO/APO will assess the wage payment requirements for each Sub/Branch Post

Office and intimate the same to Divisional nodal officer at least three days before the

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wage lists are officially handed over to the Post Office. This will enable the nodal officer

of the Postal Division to gear up for supply of cash to the SOs/BOs in time.

(b) Divisional nodal officer will personally ascertain the requirement of cash for each

post office, arrange for transmission of cash to each post office in the Division.

(c) Wage lists will be issued by the concerned PO/APO once in every week/fortnight.

Therefore, the cash flow arrangements should be made with advance planning keeping

in view the local conditions and security aspects in the following manner with priority to

arrange prompt payments to the wage seekers:

(i) By remitting cash in the Cash Bag on the same day or through special carrier

from HO (clearly indicating the mode of transport).

(ii) By authorizing the SPM to draw sufficient cash from the bank or treasury (where

the SPMs are kept in account with the local branch of a bank or treasury, as the

case may be).

(iii) By authorizing the SPMs to draw sufficient cash from the nearest Cash Office

(another SO)

(iv) While making the above arrangements, the requirement of each SO and its BOs

should be kept in mind. In case of SOs functioning as Cash Offices for other

SOs, the requirement of Cash Office will include the requirement of such SOs

dependent on it.

(v) SPM will arrange to send cash to concerned BOs

8 Disbursal of wages:

(a) One copy of wage list will be displayed on the notice board. Wages will be

disbursed through accounts as normal withdrawals.

(b) Each wage earner is issued a wage slip by PO/APO.

(c) Rules and guidelines applicable for withdrawal from an account will be followed.

As and when a wage earner attends post office with the wage slip for taking payment, it

will be ensured that the wage earner has properly filled SB-7 and follow the same

procedure as prescribed for Savings Account. In order to avoid irregular payment, wage

earner should attend post office with wage slip for taking payment. State Government

authority may issue a combined wage slip and SB-7 (withdrawal form). In such cases,

the State Government authority will print the amount of the wage in the withdrawal form

also. The amount will be paid to the concerned account holder directly. The amount of

an account holder or several account holders will not be paid to Group

Leader/GRS/Field Assistant/Panchayat Secretary under any circumstances.

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(d) Divisional nodal officer will ensure disbursement of cash in respect of all

withdrawals in time and in a smooth manner without giving scope for any

complaint/grievance.

(e) In case of Post Offices where there are heavy number of withdrawals (say about

500), the same may be spread out over a period of two or three days subject to the

condition that at least 200 payments are made each day. In any case, all payments will

be completed within three days from the date of receipt of the wage list.

(f) If any wage earner attends Account Office for taking withdrawal, it will be allowed

against the credit posted from the wage list and entry of deposit and withdrawal will be

made in the passbook on production of wage slip.

(g) At the BO, BPM will

(i) as and when wage earner attends post office for taking withdrawal, will verify

his/her identity from the Job Card, Passbook as well as Wage Slip. He will then

make entry of credit in the Passbook from the concerned wage list and round the

entry in the list with red ink. He will then on the basis pf W/D form, enter

withdrawal details in the Passbook and follow the same procedure for withdrawal

as laid for withdrawal from normal savings account.

(ii) if the wage earner applies for withdrawal for more than Rs.5000/-, will collect

Passbook and W/D Form and issue a receipt from SB-28. He will then update the

passbbok from the relevant wage list and send the Passbook and W/D Form

after putting date stamp to Account Office for sanction.

(iii) on receipt of sanction, he will collect SB-28 from the Wage Earner and made

withdrawal and hand over cash along with Passbook to Wage Earner. He will

follow all other procedure as laid down for normal savings account.

(iv) at the end of the day, prepare a separate list of transaction in triplicate with

details of all withdrawals in the format (i) serial number, (ii) account number, (iii)

amount and (iv) Balance after transaction(BAT). One copy of the list will be kept

in Guard File by allotting serial number, financial year wise, and two copies duly

supported by warrants of payment etc. will be sent to Account Office showing the

amount in payment side of BO Daily Account under separate head of ‘NREGS

SB Withdrawals’.

(v) make a consolidated one entry of the total withdrawal in NREGS SB journal

and account for the total amount paid on that day under separate head of

‘NREGS SB Withdrawals’ in the payment side of BO account.

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(vi) maintain a separate register of ‘NREGS Payment’ in the prescribed format

(Annexure-C) and make an entry of deposit on the day of receipt of wage lists

and entry of the date of withdrawal. At the end of the month, he will struck total

of all the entries in the register and make summary at the bottom reflecting

details of the amount of wage lists which has not yet been paid to wage earners.

(h) SO will also maintain registers as per Annexure-D in respect of disbursements

made at the SO. It will also maintain a register in the prescribed format (Annexure-C)

for the transaction at the SO and its BOs.

(i) HO will maintain a register of NREGS payments in the prescribed format

(Annexure-E ).

(j) Post Office will not allow closure of the Workers Wage Accounts opened under

the Scheme without prior permission from the PO/APO. As and when intimation for

deletion of the name of wage earner from Job Card is received, the wage earner may be

given the option to close the account. If the account is not closed within 30 days of

intimation for deletion of the name, the account will be closed by the Postmaster by filling

withdrawal form for the amount available in the account along with interest, if any, and

the amount will be remitted to the depositor by money order after deducting usual money

order commission. MO receipt will be attached with SB-7. After receipt of MO

acknowledgment, it will be sent to SBCO for attaching it with SB-7.

9. General:

(a) In view of the requirement of huge amount of cash and the obligation to disburse

wages within a time frame, the line limits and authorized cash balances may be

enhanced to the extent of liability of wages to be disbursed under NREGS subject to

following conditions:

(i) The remitting authority should verify and satisfy himself that the Post

Office requesting the cash has actual liability under NREGS, before sending the

remittance.

(ii) The relaxation in line limits may be allowed subject to that the routes of

the villages to which remittances are made are considered by the Police

authorities to be reasonably free from danger.

(iii) It is the responsibility of the remitting authorities (PM/SPM of cash office)

to cross verify whether cash remitted is utilized to disburse the NREGS

payments, but not to other general liabilities.

(iv) The concerned Sub Post Office should send the Excess Cash Balance

Memos in respect of retention of excess cash with details of NREGS liabilities, as

prescribed in the rules.

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(v) The concerned Branch Post Offices should furnish the details of excess

holding of cash and related NREGS liabilities on the back of the BO Daily

Accounts without fail.

(vi) The inspectorial staffs in the Sub Division and Division should verify and

satisfy as to the reasons for remittance/retention of cash in excess of the

prescribed limits, during their visits/inspections.

(vii) The preservation period for the wage list would be the same as SB-103

(Pay-in-Slip). Preservation period of consolidated Monthly Statement of

MGNREGS payment at SO (Annex-D), Summary of undisbursed amount at the

end of month, MGNREGS SB payment register of SO/BO (Annex C), Register of

MGNREGS SB advance deposits / rolling fund at HO would be same as SB

Journal.

(viii) Visiting and Inspecting authorities will carry out checks as prescribed in the

Inspection Questionnaire.

(b) Divisional Superintendents of Post Offices and the Nodal Officers in their

Divisions will assess the requirement of different forms required for implementation of

the Scheme in Post Offices viz. SB-3 cards, pay-in-slips, specimen signature slips, pass

books with plastic jackets/covers, withdrawal forms, etc and place indents on Postal

Stores Depots and keep them ready for supply to needy offices.

(c) Complaints/grievances in respect of opening of Workers’ Wage Accounts,

deposits and withdrawals under the Scheme should be dealt with on priority by the

Divisional Nodal Officer and redressed immediately, but in any case, within one week.

10 Monitoring:

(a) All the HOs dealing with the Scheme will furnish monthly statement on opening of

new Workers’ Wage/POSB Accounts at the SO and its BOs to the Divisional Nodal

Officer.

(b) All Divisional superintendents/Nodal Officers in the Divisional Office concerned

will submit monthly statement to Regional Office regarding (i) New Workers’

Wage/POSB Accounts opened under MGNREGA at each HO in the Division (ii)

additional expenditure incurred on this Scheme and (iii) complaints/grievances received

and redressed.

(c) All Regional Nodal Officers will submit monthly statement to Circle Office

regarding (i) New Workers’ Wage/POSB Accounts opened under MGNREGA at each

HO in the Region (ii) additional expenditure incurred on this Scheme (iii)

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complaints/grievances received and redressed and (iv) liaison/coordination done at

Regional/Divisional/Mandal levels with gist of decisions taken, if any,.

11 Coordination between Rural Development Department and Postal Department:

(a) At State Level, Principal Secretary / Secretary, Rural Development will convene

coordination meetings with the officers of Postal Department on monthly basis or as and

when required. Chief Post Master General/Director Postal Services will attend the

meetings.

(b) The District Programme Coordinators (DPCs) of the districts, Programme

Officers/Additional Programme Officers (POs/APOs) of the Blocks and the Nodal

Officers identified in the Postal Divisions are the key persons in the implementation of

the Scheme for wage-payments. They are also responsible for coordination among

officers at lower level and higher level on both sides to ensure smooth functioning of the

system. DPC will convene a monthly meeting at district level with the officers of Postal

Department for reviewing the implementation, identifying the problems and finding out

the solutions. Sr. Superintendent of Post Offices will attend these meetings.

(c) PO/APO will convene similar coordination meetings fortnightly at Block Level.

Assistant Superintendent of Post Offices/Inspector (Posts) will attend the meetings as

postal representative.

12. Training:

Special training programme may be organized for all concerned GDS and Departmental

Staff. In the training, State Govt officials may also be included. Joint training programme

of Postal and State Govt staff would be organized at various places in consultation with

Distt Authorities. All Officers/Officials should clearly note that they are required to attend

the training classes, feedback sessions, coordination meetings with Rural Development

Department etc as notified from time to time.

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Annexure ‘A’

Process flow for electronic transmission of wage bills through NREGASoft and electronic

transmission of fund

FTO (Fund Transfer Order) – Cumulative wage bill/pay order – containing a list of wage

bills/pay orders. This will be sent by the State Govt.to its Nodal Bank on the basis of which the

Nodal bank will transfer the funds to the Head Postmaster’s Government Account.

Detailed FTO (Wage bill/pay order) – Contain the list of beneficiaries with details of their wage

amounts, SB account number etc. Electronic copies and hard copies of these are to accompany

FTO in which they are listed.

(A) Electronic transmission of wage bills through NREGASoft

(i) NREGASoft prepares electronic detailed FTO (Fund Transfer Orders) ie wage bill

containing the details of each beneficiary – (This is called Workers Records Table).

(ii) The electronic wage bill having the information of each beneficiary (A/c number and

Amount) is available at SFTP Server for download. CEPT Mysore at regular intervals

accesses the SFTP Server and downloads the electronic wage bill.

(iii) After receipt at CEPT Mysore, data is sorted HPO wise and made ready for

transmission through eMO platform. The eMO communication updates a table in the eMO

client with all relevant details.

(iv) After receipt at HO, two tables viz File Records Table & Workers Records Table in

NREGS eMO data base are updated.

(v) Sanchay Post software will check receipt of files at frequent interval and an alert

message “NREGS credit files pending for processing” will be displayed. The form 1342

under SB Group available in online module of Sanchay Post is to be used to process the

file. The concerned PA will ensure this function.

(vi) Sanchay Post supervisor after checking with the credit received in the

Treasury,authorizes the posting in to the Ledgers of HPO (online) and SOSB (Online). To be

more precise, after satisfying that fund equal to the FTOs received from the disbursing

agency in the HPO account, the concerned Supervisor will authorize credit into each

beneficiaries’ accounts. These transactions will get posted in the HO and SOSB

automatically. HO transactions will belisted in Part-I and SO transactions will be listed in

Part-II.

(vii) When ‘Process Files’ button is clicked in the form 1342, validations are performed and

errors if any are displayed like, ‘amount / no. of accounts do not match’, ‘checksum

mismatch’, ‘error generating checksum’, ‘account number does not exist’. When ‘Save’

16

button is clicked, credit details will be updated in the respective HO / SO ledgers. In case of

SO, credit details will be updated in SO databases also, if any credits are available for SO.

The SO credits will be treated as Part II transactions at HO and included in HO LOT for the

day. LOTs / Reports can be viewed / printed using the form 1343.

(viii) Sanchay Post updates the database with following remarks after updating the ledgers.

“P” for successfully processed

“R” for returned – which means that the file could not be processed successfully.

These details are transferred through the same eMO platform to CEPT server. After

receipt at CEPT Server, the data pertaining to the Sub Offices under the HO are filtered

and successful credits at HO are sorted SO wise and is pushed to the sub offices

through the same eMO client. At the sub offices, the same procedure of updating the

ledgers of SO (using form 1342) is done in Sanchay Post along with relevant remarks. At

SO, these transactions are treated as Part III and hence not reflected in SO LOT.

Though postings are done at Sub office level, no return file is updated at SOs in the emo

client as this process was already completed at the HO level for these accounts.

(ix) In those Sub offices (SOs) where Sanchay Post is not available the existing manual

processing of updating ledgers will continue. For such offices, HO will generate print out of

credits available in the Sanchaypost and send it through account bags to reach the

respective sub offices early.

(x) CEPT Mysore sends the reverse MIS back to NREGASoft which subsequently updates

the credit information in MGNREGA MIS (NREGASoft).

(xi) Each FTO, generated as such will be listed under category “Pending for processing”

against “Post Office” in the MIS provided by nrega.nic.in. When once this return file is sent

back in to NREGASOFTand processed, this validates the status and the details of files

processed is updated instantly.

(xii) MIS of various categories is made available for monitoring purpose in the

www.nrega.nic.inportal maintained by NIC. Every Divisional head / Regional head and Circle

head can view the status in the web page and ensure timely processing of the pending files.

Besides this, the details of beneficiaries where records are not updated by the system and

the reasons therefor are also made available in the MIS, so as to take remedial measure to

get it right for future transactions. CEPT Mysore also has provided MIS for monitoring the

timely processing of files at HOs and SOs which is available with URL

https://services.ptcmysore.gov.in/eMO which can be accessed with the common log in.

17

(B) Electronic transmission of wage bills through NREGASoft and electronic

transmission of fund

(i) POs/APOs prepare wage bills and upload on State Government NREGS data server.

(ii) NREGAsoft/State Government Data Server consolidates wage bills day wise, HO wise

and sends it to competent State Government authority for approval.

(iii) The competent State Government authority approves Cumulative FTO with

consolidated wage bills and forwards the same to its bank(nodal bank) with a request to

transfer the funds as per the list of wage bills to respective Head Post Masters’ Government

Account through respective banks.

(iv) On receipt of Cumulative FTO request from the competent state bank authority, the

nodal bank prepares a FTP(File Transfer Process) File containing necessary details and

transfers it to transferee bank server.

(v) On viewing the FTP File in the server, the transferee bank branch manager authorizes

the credit and executes the file. The Head Postmasters Government Accounts gets updated

with the transaction/fund sent by the nodal bank.

(vi) After successful online transfer of funds, the nodal bank electronically informs the date

of transfer of the funds to the competent State Government authority.

(vii)The successful transfer of fund information is passed on to State Government NREGS

data server.

(viii) After receipt of the information about successful fund transfer from the nodal bank to

Postmaster’s Government Account, the State Government NREGS data server makes

available digitally signed Cumulative FTO or consolidated list of wage bills data along with

digitally signed detailed wage bills / pay orders to CEPT through SFTP.

(ix) CEPT server prepares the files for respective HOs based on wage bills and pay orders

and eMO communication application of HO concerned will download the files.

(x) Head Postmaster logs on to his bank account daily to know the status of online fund

transfer/credit into Head Postmaster’s Government Account. On receipt of credits, the

Postmaster will take print out of the online unique transaction number or down load the

Excel file of Account Statement.

(xi) Postmaster will compare the total of fund received with the total of wage bills received.

He will check the Cumulative FTOs (containing detailed wage lists) with reference to the

physical / hard copies of the detailed wage lists / pay orders received and confirmed that the

totals of individual wage lists tallies with the Cumulative FTOs and the fund received online

from the bank into Postmaster Government Accounts. If found tallied, he will authorize credit

18

of individual accounts of wage earners and will forward the hard copies of the detailed wage

lists to the respective HOs and BOs for onward disbursement of wages to the beneficiaries.

If the total is not tallied, he will bring it to the notice of the competent State Government

authority for reconciliation.

(xii) Head Postmaster will show the total of wage bills received as NREGS deposits in the

HO Summary on receipt side and as remittance to bank on the payment side.

(xiii) The Head Postmaster is provided with online viewing facility to his bank account where

he can take out the print out of the account statement of his account. Every day the Head

Postmaster will log into his account using his log in credentials. He will generate the account

statement, takeout a print out of the same.

(xiv) The Head Postmaster will prepare the ACG-11(a) Voucher for Remittance of cash and

attach the copy of the bank account statement as support document for the remittance and

send the same to the bank along with the treasury pass book (ACG-8) as was done in

respect of normal cash remittances (Only exception is for normal cash remittances cash will

accompany with the voucher, here the account statement will be enclosed in place of cash).

(xv) The Bank Manager concerned will verify the online credit and acknowledge the same in

the ACG-11(a) and Treasury pass book (ACG-8).

(xvi) Head Postmaster will show the same in the HO summary as remittance to bank and

send the reconciliation statement/ Schedule duly incorporating the number of ACG 11 (a)

Voucher number and Transaction id no. along with amount in the schedule in the due

monthly returns to the DA (P).

(xvii) The Bank Manager will also issue a Bank Scroll to the Post Master for having received

and credited the amount to the Head Postmaster’s account. The Bank Manager will send

copies of the Bank Scrolls to their Focal Point Branch of the accredited bank.

(xviii) Remittances will be reflected in the HOs in the bank reconciliation statement being

sent to DA(P).

(xix) After disbursement of wages at BOs and HOs, the LOTs are received in the HO in

SOSB. Based on the LOTs, the withdrawal date and amount details of wages disbursed will

be entered against credits / deposits (as explained in para (a) above).

19

(C) Electronic transmission of wage bills and funds through Central Plan Schemes

Monitoring System (CPSMS)

I. Programme Office (Panchayat Level) will submit the wage list to District Rural

Development Agency (DRDA).

II. Role of DRDA

a) Upload the wage list to CPSMS wbsite (maintained by O/o CGA, Ministry of Finance)

b) Upload forwarding letter addressed to HO (nodal office) and SPM of concerned SO on

CPSMS website about transfer of fund.

c) Transfer funds as per wage list from his nodal bank to HO’s Bank Account through

NEFT.

III. Role of Head Post Office (Nodal Office)

a) Access the nodal bank website and click on CPSMS option and check whether amount

has been credited or not. Here date wise CPSMS e-payment report appears.

b) Open website of CPSMS and login through HO user ID and Password and receive wage

list from MGNREGS payment option

c) After verification of both list i.e. list received from CPSMS Software and amount shown

in list received from Nodal Bank website, HO’s Bank scroll is obtained to verify whether

amount is actually credited or not.

d) HO send wage list to concerned Sub Office for deposit into A/c of beneficiaries and it’s

disbursement and also keys in amount in concerned account.

IV. Role of Sub Post Office

a) SO will credit the amount of wage in respective A/c and disburse it to the beneficiary. If

wage list is related to any BO it will forward it to concerned BO.

V. Role of Branch Post Office

a) After receiving wage list from SO it will disburse the amount to beneficiary.

20

Annexure-B

Register of NREGS SB Advance Deposit/Rolling Fund at Head Post Office

Month Opening

Balance

Fund

received as

advance

deposit

/rolling

fund

Cheque received and credited under

separate head

Total

Amount

Signature

of PM

Cheque

No and

date

Date of

clearance

Amount (2+3 + 6) Amount

credited in

NREGS/ SB

Accounts

Closing

balance

(7-8)

1 2 3 4 5 6 7 8 9 10

Annexure-C

NREGS SB Payment Register of SO/BO

Date Opening balance

(undisbursed

amount at the

end of previous

month)

Wage Payment list

received during the month

Total payment due Amount disbursed

during the month

Closing balance of

Amount remained

un-disbursed at

the end of month

Remarks Signature

of

SPM/BPM

No. of

Benef

i-

ciarie

s

Amount

Wage

Pay

Order

No. &

Date

No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount

Total

21

Summary of un-disbursed amount at the end of month

Wage list no. Name of village Period of fortnight No. of Beneficiaries Amount

From To

Total

Annexure-D

Consolidated monthly statement of NREGS Payment at SO

Name of

BO/SO

Opening balance

(un-disbursed

amount at the end

of previous month

Wage payment list

received during the

month

Total payment due Amount disbursed

during the month

Closing balance of

un-disbursed

amount at the end

of month

Remarks Signature

of the

concerned

official

No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount

Total

22

Annexure-E

Consolidated monthly statement of NREGS Payment at HO

Name of

SO/HO

Opening balance

(un-disbursed

amount at the end

of previous month

Wage payment list

received during the

month

Total payment due Amount disbursed

during the month

Closing balance of

un-disbursed

amount at the end

of month

Remarks Signature

of the

concerned

official

No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount No. of

Benefi-

ciaries

Amount

Total

23

Annexure-F

Format of Residence Proof

I hereby certify that Shri/Smt/Ms……………………………………………… is known to me from past…………………years

and ……………………. Months.His/Her residential address is as follows:

Present Address:

…………………………………………..

………………………………………….

Permanent Address:

…………………………………………..

………………………………………….

Signature of BPM

24

Annexure G

Register of NREGS SB Advance Deposit/Rolling Fund at Head Post Office

Month Opening

Balance

Fund received

as advance

deposit /rolling

fund

Total Amount Amount

credited in

NREGS/ SB

Accounts

(Closing balance

(4-5)

Signature of PM

(2+3)

1 2 3 4 5 6 7

25

Accounting Procedure for Workers’ Wage Account under MGNREG Act

On the basis of Gazette Notification, Standard Operating Procedure and other records

relating thereto received from Rural Business Division, the Heads of Accounts and Accounting

Procedure for the Scheme Mahatma Gandhi National Rural Employment Guarantee Act

(MGNREGA) has been allotted/formulated.

1. Heads of Accounts: The following Heads of Accounts are prescribed to be opened in the

Books of Department for classification of the transactions for the scheme.

(a) When amount is received in advance in the shape of Rolling

Fund:

Major Head 8661-Suspense Account (Postal) Minor Head 140- Miscellaneous Suspense

Sub Head 24- Amount received in Advance from State

Govt. on account of MGNREGA as Rolling Fund

(b) For classification of Deposits and Withdrawals in Workers’ Wage Account under MGNREGA:

Major Head - 8001 - National Savings Deposits

Minor Head 101 - Post Office Savings Accounts 1981 Sub & Detailed Head 02 - Workers’ Wages Account under MG NREG Act (c) For Interest: Major Head 8008 - Income & Expenditure of National Savings Deposit Sub Major Head 02 - Interest payments to subscribers Minor Head 101 - Interest on Savings Deposits

Sub Head 01- Post Office Savings Bank Deposits Detailed Head 02 - Interest on Workers’’ Wages Account

under MGNREG Act Object Head 45- Interest (d) For Classification of expenditure to MGNREG Act : 3201-02-104-05-01 (Non Plan) –Expenditure relating to MGNERGA

2. Accounting Procedure: The role of Different units of the Department relating to the Scheme

as far as Accounting Procedure is concerned is furnished below:

26

ACCOUNTING PROCEDURE-I

When amount is received in Advance in the shape of Rolling Fund:

(A) Role of Head Post office

(a) On receipt of amount by means of Cheque under the scheme MGNREG Act from the State

Government Authorities in the shape of Rolling Fund, the Head Post Office will make entries in

the Register of Cheques and will take immediate action to send the cheques to its Bank for

clearance.

(b) On receipt of clearance from Bank, the amount of cheque will be accounted for on the

Payment side of the HO Cash Book under the distinct Head of Account ‘Remittance made to

Bank’.

(c) A separate register will be maintained at Head Post office for keeping vigilant watch over

the amount received in advance in the shape of Rolling Fund from State Govt. Authorities and

further its adjustment into Workers’ Wage Account under MGNREG Act.

(d) On receipt of Wage list, village-wise, from Programming Officer/Assistant Programming

Officer of the State Government, the amount will be credited in the respective Workers’ Wage

Account under MGNREG Act stands opened at Head Post Office including stands opened at

various Sub Post Offices and Branch Post Offices under its accounts jurisdiction.

(e) The Head Post Office will reflect the amount of deposits under Workers’ Wage Account

under MGNREG Act on the Receipt side of Head Office Cash Book under the dis tinct Head

‘Deposits’ Workers’ Wage Account under MGNREG Act. Similarly the Withdrawal from

Workers’ Wage Account under MGMREGA will be shown on the Payment side of the Head

Office Cash Book.

(f) The remaining procedure contained in Post Office Savings Bank Manual will apply mutatis

mutandis to the transactions made under the Workers’ Wage Account opened for the scheme

MGNREG Act.

27

(B) Role of Postal Accounts Offices

(a) On receipt of Cash Accounts Return from Head Post offices, the PA Section of Postal

Accounts Offices will classify the amount received in advance in the shape of Rolling Fund under

the Head Credit Suspense mentioned above at 1(a) 8661-140- 24 - Amount received in

Advance from State Government on Account of MGNREGA as Rolling Fund .

(b) On receipt of further information from concerned Head Post Office about the Deposits as

well as Withdrawals pertaining to the amount received in advance in the shape of Rolling Fund

necessary adjustment will be made by debiting the Suspense Head and crediting the relevant

Head of Account opened for Workers’ Wage Account under MGMREGA i.e. 8001-101-02-

Workers’ Wage Account under MGNREG Act.

ACCOUNTING PROCEDURE II

When amount is not received in Advance in the shape of Rolling Fund but actual amount is

received along with the wage lists.

(A) Role of Head Post Office

(a) On receipt of amount under the scheme MGNREG Act from the State Government

Authorities, the Head Post Office will account for the same on the Receipt side of Head Office

Cash Book under the distinct Head ‘Deposits’ Workers’ Wage Account under MGNREG Act.

Similarly the Withdrawal from Workers’ Wage Account under MGNREGA will be shown on the

Payment side of the Head Office Cash Book.

(b) The remaining procedure contained in Post Office Savings Bank Manual will apply mutatis

mutandis to the transactions made under the Workers’ Wage Account opened for the scheme

MGNREG Act.

(B) Role of Postal Accounts Offices

(a) At the end of the month, on receipt of the Cash Account returns from the Head Post Offices

the PA Section of the Postal Accounts Offices will Book the amount of Deposits as well as

Withdrawals under the following Heads of Accounts:

28

(i) For classification of Deposits and Withdrawals in Workers’

Wage Account under MGNREGA:

Major Head - 8001 - National Savings Deposits Minor Head 101 - Post Office Savings Accounts 1981

Sub & Detailed Head 02 - Workers’ Wages Account under MGNREG Act (ii) For Interest: Major Head 8008 - Income & Expenditure of National Savings Deposit Sub Major Head 02 - Interest payments to subscribers

Minor Head 101 - Interest on Savings Deposits Sub Head 01 - Post Office Savings Bank Deposits

Detailed Head 02 - Interest on Workers’ Wages Account under MGNREG Act Object Head 45- Interest (iii) For Classification of expenditure to MGNREG Act: 3201-02-104-05-01 (Non Plan) –Expenditure relating to MGNERGA

(b) Postal Accounts Offices will maintain Control Accounts Register on the basis of the

information/details from the monthly statistical statements, received from the Savings Bank

Control Organisation of each Head Post Office as hitherto done in the cases of Saving Schemes

and send the information to the Directorate in the similar manner in the prescribed statement

on monthly basis.

(c) The remaining procedure as contained in Chapter VIII of Postal Accounts Manual, Vol. II will

apply mutatis mutandis to the transactions made under the Workers’ Wage Account opened

for the scheme MGNREG Act.