Karnataka Govt Directs SLBC to Stop Deducting Gruha Lakshmi Funds for Loan Repayments

The Karnataka government issued a letter to the State Level Bankers Committee (SLBC) directing banks not to use Gruha Lakshmi scheme amounts to recover loan dues unless the beneficiary provides explicit written consent. It further stated that any money already debited from the Gruha Lakshmi accounts for loan repayment without such consent must be re‑credited to the respective women’s accounts without delay. The Gruha Lakshmi scheme, launched by the state, provides monthly financial assistance to women heads of households, and the directive aims to protect the intended benefit from being diverted for loan recovery.