Digital Payment Systems and Financial Inclusion: Evidence from the Implementation of MGNREGA in Rural Haryana

This empirical study examines digital payment systems under India’s MGNREGA in the village of Kotli, Haryana, focusing on beneficiary satisfaction, efficiency, and transparency. Data were gathered from 90 beneficiaries using field observations, interviews, and questionnaires. According to the findings, 76% of workers receive their wages digitally and 82% prefer this approach. Seventy-eight percent of respondents agreed that digital payments increased transparency and decreased corruption. However, 71% of respondents experience payment delays, and 68% lack digital literacy. Issues with Aadhaar-bank linkage, nepotism, and excessive workloads are significant obstacles to progress. According to research, digital payments enhance governance results, but their widespread adoption necessitates additional investments in infrastructure and digital literacy. This study fills in gaps in the macro-level-focused literature by offering detailed, village-level data on the use of digital payments in rural employment programmes. JEL Codes: 3-4