Daijiworld Media Network – Bengaluru
Bengaluru, Oct 10: The Karnataka government has directed banks not to adjust the monthly financial assistance of Rs 2,000 provided to women under the Gruha Lakshmi scheme against outstanding loan instalments, interest or other dues. It has also ordered banks to immediately refund amounts deducted without the beneficiaries’ written consent.
Additional chief secretary and development commissioner Uma Mahadevan has issued strict instructions to the convener of the State Level Bankers’ Committee (SLBC) to ensure compliance by all commercial banks, cooperative banks, regional rural banks and other financial institutions.
The move follows complaints from women beneficiaries that banks were deducting Gruha Lakshmi assistance towards loan repayments. In response to these complaints, Legislative Council member and state vice-president of the Guarantee Schemes Implementation Authority Dinesh Gooligowda had submitted a representation to chief minister D K Shivakumar, seeking intervention.
Acting on the chief minister’s directions, the state government has instructed the SLBC convener to ensure that funds credited under the scheme are not automatically debited or adjusted against outstanding loans. Banks have been asked to issue circulars to all branches and introduce the necessary technical safeguards to prevent such deductions. Clear instructions must also be issued to branch-level staff.
The government has further directed banks to re-credit amounts already deducted towards loan dues without the beneficiaries’ explicit written consent. Instructions in this regard have also been issued to the chief executive officers of zilla panchayats.
The SLBC convener has been asked to ensure strict compliance by all financial institutions and submit a report to the government on the action taken. Copies of the communication have been forwarded to the secretary of the Women and Child Development Department, deputy commissioners and chief executive officers of zilla panchayats.
In his representation to the chief minister, Gooligowda argued that deductions by banks and microfinance institutions were undermining the core objective of the Gruha Lakshmi scheme, which is intended to support women's household expenses, children's education and financial independence.
He also sought stringent action against private financial institutions allegedly resorting to coercive loan recovery practices, including threatening beneficiaries. Gooligowda urged the government to ensure refunds of unauthorised deductions and asked that deputy commissioners and superintendents of police be directed to monitor complaints in this regard.