Karnataka Plans Tighter Checks On Guarantee Schemes To Curb Misuse

The Karnataka government is preparing to introduce a series of changes in the implementation of its flagship guarantee schemes as it moves to curb misuse and improve beneficiary verification.

During a review meeting chaired by Chief Minister DK Shivkumar, officials discussed multiple reforms that could significantly alter how benefits under schemes such as Gruha Lakshmi are monitored and delivered.

One of the key changes under consideration is stricter scrutiny of beneficiaries. The government has found instances where benefits continued to be credited to dead beneficiaries, prompting plans for regular verification and faster updating of beneficiary databases.

Officials also discussed measures to identify cases where multiple beneficiaries are linked to a single bank account or where an individual has registered multiple accounts. Such cases were flagged in the Auditor General's report, leading to a push for stronger verification mechanisms.

Another significant change could be tighter control over bank accounts receiving guarantee benefits. The government has directed officials to ensure that payments are made only to accounts within Karnataka after cases emerged of benefits being transferred to accounts located in other states.

The state is also expected to strengthen checks on UPI-linked and payment bank accounts following reports of misuse through certain digital banking platforms.

To improve transparency, the government is considering a new system under which beneficiaries will receive a voice message on their mobile phones immediately after funds are credited to their accounts. The move is aimed at helping beneficiaries track payments and identify discrepancies quickly.

The government is also looking at addressing practical issues faced by genuine beneficiaries. Officials were asked to ensure that beneficiaries who changed bank accounts because welfare payments were being adjusted against loan dues are not excluded from receiving benefits.

The review reflects a shift in the government's approach from expanding coverage of guarantee schemes to strengthening monitoring, verification and accountability. While the government has reiterated that no eligible beneficiary should suffer, the latest measure is likely to start a new row in the state with the BJP already alleging that this could a way to stall or stop Guarantees