Karnataka CM moves to shield Gruha Lakshmi payments from bank deductions

Karnataka Chief Minister D. K. Shivakumar has directed the state's top civil servant to ensure that banks and financial institutions stop adjusting the monthly Gruha Lakshmi transfer against loan instalments or interest.

The instruction follows a representation from Dinesh Gooligowda, an MLC and state vice-president of the Guarantee Implementation Authority, who flagged the difficulties faced by poor women when the money is recovered soon after it is credited.

In a letter to Chief Secretary Shalini Rajneesh, the Chief Minister asked that strict directions be issued to banks. He said the Bank Management Board should be written to and clearly told not to deduct money from the accounts of Gruha Lakshmi beneficiaries towards loan instalments.

In his representation, Gooligowda said ₹2,000 is credited every month to 1,24,48,000 women heads of families under the scheme, describing the amount as a lifeline for daily needs, children's education and self-reliance. He said commercial banks, private finance companies and micro-finance institutions were deducting the money immediately on being credited, citing old dues or interest and without informing the beneficiaries, which he argued defeats the purpose of the scheme.

He also pointed out that district administrations had taken the issue seriously at recent District Level Bankers Review Committee meetings, where it was clarified that Gruha Lakshmi money should not be confiscated for loan instalments or interest.

Gooligowda urged the Chief Minister to direct the authorities concerned to file extortion cases and cancel the licences of private finance companies or agents who forcibly collect from or threaten beneficiaries as soon as the money is credited. He also sought continuous monitoring of illegal deduction cases by deputy commissioners and superintendents of police in the districts.