Karnataka Instructs SLBC to Halt Gruha Lakshmi Loan Adjustments

The Karnataka Government has officially issued a directive to the State Level Bankers' Committee (SLBC) instructing banks to stop adjusting the financial assistance provided under the Gruha Lakshmi welfare scheme against outstanding loan liabilities of the beneficiaries. The state administration clarified that under no circumstances should the welfare amounts deposited into women's bank accounts be diverted for loan recovery without explicit, written consent. Furthermore, the directive mandates that any money already deducted toward outstanding loans by banking institutions must be immediately re-credited to the respective beneficiaries' accounts. This policy move is crucial for protecting direct benefit transfer (DBT) welfare schemes from banking practices that undermine social security programs.