BENGALURU: Karnataka Chief Minister DK Shivakumar has directed officials to ensure that bank accounts linked to the state’s guarantee schemes are located within Karnataka, after it was found that funds were being transferred to accounts in other states.
The CM said Karnataka’s welfare programmes must benefit only eligible residents of the state. He expressed concern that voters from other states were reportedly availing benefits under the schemes and instructed officials to take steps to prevent such instances.
Shivakumar, who held a review meeting on guarantee schemes on Friday, directed officials to ensure that no eligible beneficiary is inconvenienced while cracking down on misuse of the guarantee schemes. Further, the CM said that action should focus only on ineligible beneficiaries and fraudulent claims. Shivakumar noted that some Gruha Lakshmi beneficiaries had changed bank accounts after the assistance amount was automatically adjusted against loan repayments and said such genuine beneficiaries should not face difficulties.
In the meeting, officials informed that Gruha Lakshmi benefits were being credited to deceased beneficiaries and that some accounts outside Karnataka were receiving payments. Officials also flagged alleged misuse of UPI accounts opened through Airtel Payments Bank. Shivakumar stressed that Karnataka’s welfare schemes must benefit only eligible residents of the state and directed officials to plug loopholes.
The CM also suggested encouraging financially well-off beneficiaries to voluntarily opt out of the schemes.
The meeting also reviewed technical issues in the Gruha Lakshmi scheme, including e-KYC compliance and inactive bank accounts. It also discussed observations in the CAG report, which flagged cases of multiple beneficiaries receiving payments through a single account, duplicate registrations and inadequate verification of application details.
Officials were also directed to gather information on people from other states who have settled in Karnataka and are availing benefits under the Gruha Jyothi scheme.
The meeting stressed that only those whose names are on the electoral rolls should be beneficiaries of government welfare schemes. The meeting also called for strict action to curb the illegal sale of Anna Bhagya rice in the black market.
Officials informed that 763 crore free journeys had been undertaken by women under the Shakti scheme till the end of May, with ticket reimbursements amounting to Rs 20,047.69 crore. Around 10 lakh free bus passes are expected to be distributed to students during 2026-27. “Under Gruha Jyothi, 1.65 crore beneficiaries have availed benefits so far. The review also noted that Rs 11,561 crore has been transferred to beneficiaries under the Anna Bhagya scheme through DBT, while an additional 5 kg of rice has been distributed every month since February 2025,” stated a release from the CM’s office.
Smart cards
Financial Advisor to CM DK Shivakumar, LK Ateeq said that the idea of issuing a smart card for eligible people to avail benefits of guarantees is being examined. The technology to be adopted for this purpose— whether to give a smart card that can be swiped or tapped— are being looked into, he said. All stakeholders, including the transport department, are being consulted, he said. Ateeq further said that they are also discussing if there should be one smart card for all the guarantees or one card for two or more guarantees combined.
He said that maximum attention is being paid to Gruha Jyothi and Gruha Lakshmi schemes. In case of Anna Bhagya, there are already BPL and APL cards to address issues. Ateeq said there are 1.64 crore RR number consumers who are eligible for the Gruha Jyothi scheme but have not taken it, as they are financially capable of paying electricity bills.
Sources said a discussion was also held on increasing bus fares in the wake of rising fuel prices.