Confusion in e-KYC Causes Financial Disruption for Lakhs of Women Beneficiaries

A flawed e-KYC question for the Ladki Bahin scheme led to 24 lakh women in Maharashtra mistakenly classified as government employees, halting their financial aid. The Women and Child Welfare Department is now physically verifying affected beneficiaries. Anganwadi workers are involved in correcting the records.

A flawed question in the e-KYC procedure for the Ladki Bahin scheme wrongly classified over 24 lakh women in Maharashtra as government employees, resulting in the abrupt halting of their monthly financial assistance.

The Women and Child Welfare Department acknowledged the error, which forced the government to deploy nearly one lakh anganwadi workers across the state to physically verify the affected beneficiaries. The issue arose from a question in the e-KYC form, flawed due to its use of complex negative wording. It led to numerous beneficiaries misunderstanding the question, resulting in incorrect answers.

The extent of the mistake became evident during a data review since the state has only around 8 to 9 lakh government employees. Women beneficiaries experiencing payment issues have voiced complaints, prompting a verification process that involves correcting the records by anganwadi workers. The e-KYC exercise - aimed at ensuring scheme eligibility - had a December 31, 2025, deadline. Meanwhile, the government has begun recovery from those who misused the scheme, including men and state employees who wrongfully claimed benefits.

(With inputs from agencies.)