Electronic benefit payments Recognising the several advantages of using bank accounts for disbursal of government benefits, many State Governments have decided to disburse NREGA payments social security benefits electronically through no frills bank accounts and in some States with such accounts operated through smart cards with bio–metric identification.
A Committee set up by RBI examined the various models through which such payments can be made and has recommended a bank led model with sharing of costs between Government and banks. Appropriate support from the RBI or the Financial Inclusion Technology Fund could also be  BIS Review 110/2008  5  thought of in the initial stages.