The Centre has notified three comprehensive sets of rules under the VB-G RAM G Act, laying down the complete framework for transition from MGNREGS to the new rural employment guarantee scheme. According to Business Standard, the rules were notified by the Ministry of Rural Development through separate Gazette notifications dated July 1, 2026, which came into force from the date of their publication. The draft rules were issued in May 2026 and the government had invited feedback on them before finalization.
The Transitional Provisions Rules provide for an orderly migration from MGNREGS to the VB-G RAM G Act, with state governments required to verify all liabilities under MGNREGS existing up to June 30, settle admissible dues and submit audited utilisation certificates within 180 days. As per Business Standard, this period is extendable by another 90 days by the Centre for recorded reasons, while the Centre will continue fund support for liabilities existing up to June 30, allowing interim allocations to states until final rules governing normative allocation are framed. The rules ensure that ongoing MGNREGS works will continue under the new Act, with e-KYC-verified MGNREGS job cards remaining valid until states issue new Gramin Rozgar Guarantee Cards.
A second notification prescribes the manner of payment of wages and unemployment allowance under the VB-G RAM G Act, mandating that all wage and unemployment allowance payments be made only through Direct Benefit Transfer (DBT) into beneficiaries' bank or post office accounts. According to Business Standard, this prohibits cash payments except under extraordinary circumstances permitted by the Centre, with all payments to be processed electronically through the scheme's Management Information System (MIS) or another notified digital platform. The rules require payments to be routed through the Aadhaar Payment Bridge System or other approved authentication mechanisms to ensure efficiency and transparency.
The third notification lays down the procedure for expenditure beyond the Centre's state-wise normative allocation and for funding Union territories without legislatures. As reported by Business Standard, the Centre will bear the entire expenditure of the scheme in Union territories without legislatures, while expenditure by states beyond the approved normative allocation must be captured through the designated MIS. The rules require component-wise and source-wise reporting to distinguish expenditure financed by the Centre from that borne by state governments, with all such data forming part of the scheme's audit and financial management records. The Centre has prepared an elaborate plan with interim allocation of ₹95,692.31 crore to states and Union Territories for smooth transition.
Union Agriculture Minister Shivraj Singh Chouhan and Chief Minister N Chandrababu Naidu formally rolled out the Act in Tirupati district of Andhra Pradesh on Thursday, with the national launch held at Mukkavaripalli village in Obulavaripalle mandal of Tirupati district. The rollout comes amid intensified criticism from opposition parties and rural employment activists, who have raised concerns over changes in the existing rural employment guarantee framework. The government maintains that the new framework will strengthen rural livelihoods, increase purchasing power and accelerate inclusive development across rural India, with 24 states having notified their VB-G RAM G state schemes and 29 states and Union Territories having made budgetary provisions for the Act.
