There is a tradition of performing Dhana Dharma and giving gifts on Bali Pratipada day in Karnataka. Giving of gifts is of great significance and importance on Bali Padyami day and is based on the legend of King Bali offering all he had to Lord Vamana.
Lord Vishnu was immensely pleased with devotion and Dhaana Dharma of King Bali. Lord Vishnu as Vamana blessed Him that any gift or Daana given on the day will have more power than that of other days. He also said that those who perform Dhana Dharma on the day will be blessed with more prosperity and wealth.
King Bali also asked that after his departure his citizens should not suffer and therefore whoever performs the deepa daana on the Bali Padyami day shall have Sri Mahalakshmi stay in their house – they will be blessed with wealth and prosperity.
It is also said that those who does not wear new Vastra, and does not have abhyanjana on Bali Pratipada day will have sorrow for the full year.
Such was the devotion of King Bali that Vishnu himself is staying in one of his form (roopa) as the watchman of Bali Chakravarthi’s Pathala Loka.