The scheme is a major rural development policy push of the government of India which has been introduced for providing a sustainable income security to rural people. The scheme has been designed on a self targeting principle in that it doesn’t differentiate on the basis of socio-economic characteristics of rural people. The present study has endeavored to identify and analyze the operational performance of the scheme in the Phase-I districts of Kupwara and Poonch. The results of the study indicate muted performance of the scheme with insignificant impact on employment and wages of participating households. The wage employment under the scheme has significantly reduced rural labour migration in the study area.