Bengaluru: Karnataka Chief Minister D.K. Shivakumar has directed Chief Secretary Shalini Rajneesh, 1989-batch IAS officer of the Karnataka cadre, to issue instructions to banks and financial institutions against deducting the monthly ₹2,000 Gruha Lakshmi assistance from beneficiaries’ accounts towards loan instalments or interest.
The direction followed a representation from Dinesh Gooligowda, Karnataka Legislative Council member and vice-president of the state Guarantee Implementation Authority, who raised complaints about beneficiaries’ scheme payments being adjusted against outstanding dues.
Chief Secretary Asked to Issue Instructions to Banks
Shivakumar directed the Chief Secretary to communicate with bank managements and make it clear that Gruha Lakshmi beneficiaries’ payments should not be deducted towards loan instalments.
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The issue had also been raised earlier at the district level. In May 2026, authorities in Yadgir said banks had been instructed not to forcibly adjust Gruha Lakshmi payments against old loan balances or interest.
Gooligowda’s latest representation sought stronger action against alleged deductions by commercial banks, private finance companies and microfinance institutions. He also urged the government to monitor complaints at the district level.
Gruha Lakshmi Provides ₹2,000 Monthly Assistance
The Gruha Lakshmi scheme, launched by the Karnataka government in 2023, provides ₹2,000 per month through direct benefit transfers to eligible women identified as heads of households. Government scheme material confirms the monthly assistance.
Gooligowda said the monthly payment is used by beneficiary households for expenses including daily needs, children’s education and other household requirements. His representation argued that immediate adjustment of the amount towards loan dues would affect the intended use of the welfare payment.
According to figures cited by Gooligowda earlier this year, around 1.24 crore women were receiving the Gruha Lakshmi benefit.
Government Seeks Protection of Scheme Payments
The latest direction adds to measures being taken by the Karnataka government and district administrations concerning the handling of Gruha Lakshmi payments.
The government has also been reviewing other implementation issues involving the scheme, including payments made to deceased beneficiaries and verification of beneficiary records.
