Karnataka Govt. writes to SLBC instructing against adjusting Gruha Lakshmi amount for loans
The Karnataka government has directed the State Level Bankers' Committee to ensure that welfare payments under the Gruha Lakshmi scheme are not used by banks to offset loan dues. Banks must re-credit any funds already deducted without explicit beneficiary consent.
Why it matters
This protects the financial autonomy of welfare beneficiaries and ensures government aid reaches its intended recipients without being absorbed by debt recovery.
The State government wrote to the State Level Bankers’ Committee (SLBC) on Friday (October 9, 2026) ordering that the monthly installment of ₹2,000 deposited into women’s accounts under the Gruha Lakshmi scheme should not be adjusted towards any loans, interest or other dues.
Additional Chief Secretary and Development Commissioner Uma Mahadevan has written to the SLBC convener in this regard.
Chief Minister D.K. Shivakumar had issued directions on these lines following a representation by MLC and State vice-president of Guarantee Schemes Implementation Authority Dinesh Gooli Gowda.
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