Bhubaneswar, June 5: Labourers working under National Rural Employment Guarantee Scheme (NREGS) would be paid through post offices across Orissa.

The payment would be made through savings accounts to be opened in the name of wage earners in post offices located in their area and the area of operation of the scheme.

An MoU to this effect was signed between panchayati raj secretary R.N. Dash and chief postmaster-general of Orissa circle Ashok Kumar Das in presence of panchayati raj minister Raghunath Mohanty today.

According to the MoU, the panchayati raj department would deposit the amount in head post offices and the money would be credited to the savings accounts of the labourers.

The labourers can then withdraw the amount through their savings accounts at respective branches or sub-post offices.

The system of wage payment to card-holders under the NREGS through post office savings bank accounts would ensure transparency and fairness and prevent corruption by intermediaries, believes panchayati raj minister, Raghunath Mohanty.

Under the present practice, the wage is generally paid in cash, and in some cases through bank cheques.

There are 1,122 sub-post offices and 6,912 branch-post offices in Orissa postal circle covering 30 districts. As many as 7,583 post offices are located in rural pockets and 579 post offices are there in urban areas.

By the end of March 2008, job cards had been issued to 42.36-lakh families under NREGS and of them 12.10-lakh families had demanded jobs. Wage employment has been provided to 11.62 lakh.

The new system, the state believes, will encourage savings and facilitate empowerment of the socially and economically backward sections in the rural areas. Besides, when paid through post office savings accounts, the wage labourers will get an additional benefit of an accidental death insurance cover of Rs 1 lakh at a nominal premium of Rs 15 per annum.

The insurance claim will be provided by Oriental Insurance Company in case of death caused by road/rail and/or from fire mishaps, lightning, drowning, snake bite, natural calamities and animal attack.