To release wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme MGNREGS more directly and quickly, an electronic fund management system was launched by which bank?

Introduction / Context:
This question relates to the use of electronic fund management systems to improve wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme MGNREGS. Ensuring timely and direct wage credit to rural workers is a key governance concern. A major public sector bank partnered with the government to roll out an electronic fund management system, and you are expected to identify that bank.

Given Data / Assumptions:

• The scheme mentioned is MGNREGS, which provides wage employment to rural households.
• The objective of the system is to release wages more directly and quickly.
• The solution involved an electronic fund management system often abbreviated as e FMS.
• The options are State Bank of Hyderabad, State Bank of Travancore, State Bank of India and Oriental Bank of Commerce.

Concept / Approach:
The approach is to recognise which bank, among the options, has the scale, reach and was publicly associated with such a large national initiative. State Bank of India is the largest public sector bank in the country with a broad rural branch network and strong technological capabilities. It was widely reported as partnering with the government to implement an e FMS for MGNREGS, ensuring that wages are credited directly to workers bank accounts, reducing delays and leakages.

Step-by-Step Solution:
Step 1: Recall that MGNREGS involves a high volume of wage payments to rural beneficiaries across many districts.Step 2: Remember that to streamline such payments, the government shifted towards electronic fund transfers rather than manual, paper based methods.Step 3: Identify that State Bank of India, as the country's largest bank, was a natural choice to support such a system.Step 4: Note that State Bank of Hyderabad and State Bank of Travancore were associate banks and not the primary pan India partner for this system.Step 5: Observe that Oriental Bank of Commerce, though a public sector bank, was also not the main implementing partner mentioned in the context of MGNREGS e FMS.Step 6: Conclude that State Bank of India is the correct answer.

Verification / Alternative check:
News articles and official communications about the MGNREGS payment reforms often referred to State Bank of India's technology and branch network being used to implement the e FMS. The scheme aimed to shorten payment cycles and reduce corruption by allowing funds to be transferred from the centre to the workers accounts without multiple intermediaries. No similar nationwide e FMS implementation under MGNREGS was primarily attributed to the other banks listed in the options.

Why Other Options Are Wrong:

• State Bank of Hyderabad is wrong because it was an associate bank and did not lead the nationwide e FMS initiative for MGNREGS.
• State Bank of Travancore is wrong for similar reasons; it was regional in focus and not the main partner in the context of this scheme.
• Oriental Bank of Commerce is wrong because it was not the bank associated in exam and media references with the MGNREGS electronic fund management system rollout.

Common Pitfalls:
Candidates may see the words State Bank and select one of the associate banks without carefully noticing that the primary national level bank is State Bank of India. Another pitfall is to rely too much on guesswork when several public sector banks are listed. To avoid such errors, remember that large, flagship schemes that require wide coverage and strong technology support are frequently associated with State Bank of India.

Final Answer:
State Bank of India is the bank that launched and supported the electronic fund management system to release MGNREGS wages more directly and quickly.