Stories
Karnataka Government Stops Gruhalakshmi Funds From Being Credited To Bank Loans
N
News18•09-10-2026, 19:19
Karnataka Government Stops Gruhalakshmi Funds From Being Credited To Bank Loans
- •The state government has issued an order halting the crediting of Gruhalakshmi funds towards bank loan repayments.
- •Instructions have been given to refund the Gruhalakshmi money that was previously credited towards old loans.
- •The Additional Chief Secretary wrote to the State Level Bankers Committee following an appeal by MLC Dinesh Gooligowda.
- •New guidelines and re-verification applications have been prepared to exclude ineligible beneficiaries and ensure transparency.
- •The re-verification process will include providing details such as Aadhaar, ration card, income tax status, and biometric authentication.
Key Questions Answered
The state government has issued an order stopping Gruhalakshmi funds from being credited toward bank loan repayments and directed that previously deducted loan funds be refunded. Instructions have also been given to the State Level Bankers' Committee to issue a compliance circular for all banks and financial institutions.
Sources indicate that the survey for the Gruhalakshmi re-verification process will begin after the conclusion of the model code of conduct for elections.
MLC Dinesh Gooligowda appealed to restrict the crediting of Gruhalakshmi funds toward loans by writing a letter to DyCM D.K. Shivakumar, which subsequently led to the government's official order.
