Karnataka proposes an amendment to the school recognition rules mandating an e-bank guarantee security deposit

Apr 01, 2026 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Government of Karnataka, on March 27, 2026, issued a draft notification proposing amendments to the Karnataka Educational Institutions (Recognition of Primary and Secondary Schools) Rules, 1999, under section 145 of the Karnataka Education Act, 1983. Stakeholders have been invited to submit objections or suggestions within 15 days of publication.

The draft amendment revises Rule 3(3), mandating that applications for school recognition must be accompanied by an annual audit report along with a security deposit in the form of an e-bank guarantee from a nationalised bank, in favour of the concerned Deputy Director for School Education (DDPI). Managements will be allowed to utilise the interest earned on such deposits for institutional development.

Further, the proposal empowers the education department to utilise the security deposit in cases of default or closure of schools to clear dues payable to staff. The amended rules will come into force upon final publication in the Official Gazette. 

[Notification No. EP 1 PGC 2026 (Part-1)]


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