Beyond Haircuts and Provisions: Why Indian Banking Needs a Borrower-Linked Precautionary Reserve

Nearly two decades ago, in my 2004 book Management of Non-Performing Advances in Public Sector Banks—published by the Indian Institute of Banking and Finance (IIBF) with a foreword by former Reserve Bank of India (RBI) Governor Dr. C. Rangarajan—I put forward a concept aimed at strengthening the preventive architecture of Indian banking: the Precautionary Margin Reserve (PMR).

The core idea was straightforward yet fundamental: while banks are required to maintain provisions against bad loans, borrowers who benefit from financial credit should also build a dedicated, loss-absorbing financial buffer during good times.

Today, as the banking sector reflects on the massive resolution haircuts accepted in recent years, this 20-year-old proposal deserves a fresh, objective evaluation.

The Math Behind the Resolution Dilemma

Resolving stressed assets is vital for clean balance sheets and economic dynamism. However, the sheer scale of credit sacrifices made during resolution cycles raises an unavoidable policy question. Recent compilation of data shared by the All India Bank Employees' Association (AIBEA)—derived from a reply in the Rajya Sabha—paints a stark picture:

• Admitted Dues (2021–22 to 2025–26): ₹8,48,700 crore

• Amount Realized by Banks: ₹2,41,666 crore

• Sacrifice / Haircuts Taken: ₹6,07,034 crore (~71.5%)

When banking institutions absorb haircuts of this magnitude, the ultimate financial strain trickles down to key stakeholders—depositors, taxpayers, and shareholders. Corrective mechanisms like the Insolvency and Bankruptcy Code (IBC) and debt recovery tribunals are essential, but they act after the asset has already decayed.Should Indian banking rely almost exclusively on post-facto recovery, or is it time to build stronger borrower-side preventive safeguards?

Rethinking Risk: The Precautionary Margin Reserve

The Precautionary Margin Reserve concept operates on a principle of shared risk responsibility:

1. Borrower-Side Accountability: Rather than placing the entire onus of provisioning on the lending bank, borrowers build a risk-indexed reserve proportional to their loan size, account conduct, and risk profile.

2. A Cushion for Rainy Days: In times of severe business downturns or account stress, this reserve serves as the primary line of defence to absorb financial shocks before invoking bank provisions or forcing steep resolution haircuts.

3. Dynamic Risk Pricing: Borrowers with exemplary credit history, low leverage, and strong repayment track records contribute significantly lower margins, creating a direct financial incentive for sound governance.

Adapting a 2004 Concept to a Modern Regulatory Era

The financial landscape has transformed dramatically over the past two decades. Regulatory frameworks have matured, risk architectures are more sophisticated, and frameworks like the Expected Credit Loss (ECL) model are reshaping bank provisioning. The Precautionary Margin Reserve does not need to be implemented exactly as envisioned in 2004. Instead, central bank regulators and financial planners could explore its modern feasibility through flexible mechanisms:

• Risk-Indexed Calibration: Designing reserves so they do not restrict liquidity or burden genuine, productive borrowers.

• Targeted Pilot Testing: Introducing the reserve framework initially on a trial basis for high-value corporate exposures or specific capital-intensive sectors.

• Loss-Absorption Hierarchy: Positioning the borrower reserve as an early-stage buffer before enforcement or haircut-heavy restructurings.

• Feasibility Studies: Conducting independent empirical research to analyse how borrower-held cushions impact total system-wide credit costs.

Conclusion: Protecting the Future of Indian Banking

No single policy instrument can completely eliminate non-performing assets or business failures. However, relying solely on corrective tools after defaults occur leaves the financial ecosystem vulnerable to heavy losses.

A suggestion made two decades ago may hold even greater relevance today. By blending strong recovery tools with proactive, borrower-linked preventive mechanisms, the Indian banking system can build a more resilient, equitable, and sustainable ecosystem—one that protects depositors, shareholders, and the broader economy for years to come.

Samastha Loka Sukhino Bhavanthu.

 T V G Krishnan

( personal Views) 

Earned to Live, Taxed to Death

 Apropos your editorial, "More Billionaires in Your Neighbourhood" (ET 29/7/26), it makes for an interesting and satisfying read as prosperity is increasing all around. However, a broader tax net, coupled with faster real wage growth, is a realistic position and the need of the hour amid widening inequality daily, fleecing inflation and an unbearable cost of living due to an all-around price increase, figuratively speaking, from salt to camphor. Progress of IT administration is admirable but the spirit behind the tax reforms—to make them more rational and sensible, keeping the intent in letter and spirit as intended by the Budgetary policies and the FM's recent remarks—does not appear visible in the practice of not refunding the eligible refunds. Instead, refunds are being adjusted against tax demands previously raised even a decade ago and kept in abeyance without resolving them based on their merits, the genuine reasons presented to the department, or ignoring the department's own policy regarding not reopening cases pending beyond a certain prescribed period, and disregarding the honesty and integrity of taxpayers based on past records. Making tax compliance friendlier, simpler, and more equitable—and, above all, collecting taxes at source without requiring returns up to a cutoff point, if possible—makes more sense and is more pragmatic given the voluminous growth in transactions and earnings spread through enhanced digital payments, and the vast employment of people enjoying the trickle-down effect of income distribution from more millionaires and billionaires. It is time to re-examine the filing of returns if income consists only of salary, pension and interest from deposits.   

 

T.V. G Krishnan

Bengaluru .

(Personal Views). 

( A modified version of this letter appeared in ET july 30,2026)

Towards a Time-Conscious India. Time Consciousness as a Dimension of Human Development

 

Towards a Time-Conscious India. Time Consciousness as a Dimension of Human Development

THE CULTURE OF WASTING OTHER PEOPLE'S TIME is due to lack of awareness of the importance and value of Time.  Respect Time, Respect People, Respect Responsibility, Respect the Nation.

Time: Nature's Eternal Gift and Humanity's Measure

Time has neither a beginning nor an ending. It is an eternal dimension of Nature and of the universe within which all living beings exist and all activities take place. Human beings do not create time; we merely observe its continuous flow, understand its rhythms, and organise our lives within it.

The movements of the Earth, the Sun and the Moon enabled humanity to develop systems for measuring time. The Earth's rotation gives us the cycle of day and night, its revolution around the Sun gives us the year, and the Moon's phases contributed to the development of the days, month and the calendar. From these natural cycles emerged the hours, minutes and seconds by which we coordinate our activities.

Time itself is continuous; clocks and calendars are human methods of measuring it. Nature functions through rhythms, cycles and laws, and human beings, as part of Nature, must learn to live and act in harmony with them.

The greatest lesson is simple: we cannot control the passage of time, but we can choose how wisely we use the time available to us.

Human life, unlike time itself, is finite. That is why the responsible use of time is essential to individual welfare, institutional efficiency, economic development and the welfare of society.

The Hidden Cost of Wasting Time

The problem of wasted time in India cannot be attributed only to government offices or public administration. It is equally visible in the private sector and, perhaps more significantly, in everyday commercial and professional life.

Banks, insurance companies, hospitals, diagnostic centres, departmental stores, automobile service centres, hotels, restaurants and numerous other service establishments often require customers to spend considerable time waiting for services that could be delivered more efficiently through better organisation.

A patient may have a hospital appointment but still wait for hours. A bank customer may visit for a simple transaction but spend considerable time in queues or moving from one counter to another. An insurance claim may require repeated visits and unnecessary documentation. A vehicle owner may wait at a service centre because of poor scheduling. Even restaurants and hotels, where customers are paying specifically for a service, may not always give sufficient importance to punctuality and timely delivery.

These are not merely matters of inconvenience. They reflect a failure to recognise the economic and human value of time.

The problem is not confined to poorly organised institutions. Even among highly educated, professionally qualified and technically competent people, there is often inadequate sensitivity to the time of others. We may be extremely careful about protecting our own time while remaining casual about wasting someone else's.

A meeting begins late because a senior person has not arrived. An appointment is given for a particular time, but the customer is left waiting without explanation. A promised service is delayed without communication. A simple decision requires several rounds of discussion. A customer is transferred from one employee to another because no one takes ownership of the problem.

Each incident may appear insignificant. But when multiplied across millions of transactions every day, the collective loss becomes enormous.

The Value of a Customer's Time

Every customer who enters a bank, hospital, insurance office, restaurant or service centre carries with them a limited and non-renewable resource: time.

When an organisation wastes that time unnecessarily, it imposes a hidden cost on the customer. A professional waiting two hours at a hospital may lose productive work. A businessperson delayed by a bank transaction may miss an opportunity. A family waiting for a delayed service may lose valuable personal time. An elderly person standing in a queue may experience physical hardship that cannot be measured merely in minutes.

The real cost of waiting is therefore not simply the number of hours lost. It includes the value of what could have been done during those hours.

Customer service should consequently be judged not only by whether a service was eventually delivered, but also by how much unnecessary time the customer had to sacrifice to receive it.

Time as a Measure of Service Quality

Perhaps the time has come for organisations to introduce Time-Based Service Standards.

Every service institution should be able to measure:

• How long does a customer normally wait?
• How long does a transaction take?
• How often are appointments delayed?
• How many times must a customer return for the same matter?
• How many processes involve unnecessary repetition?
• How much time is lost because departments fail to coordinate?
• How quickly are complaints resolved?

These could become measurable indicators of organisational efficiency and service quality.

A bank that completes a transaction in ten minutes should be distinguished from one that routinely takes an hour. A hospital that respects appointment schedules should be recognised differently from one where patients routinely wait for several hours. An insurance company that settles genuine claims efficiently should receive recognition for its service standards. A restaurant that promises a particular delivery time should make a reasonable effort to honour that commitment.

Time could become an important component of a broader Quality of Service Index.

Respect for Time as Professional Responsibility

Respect for time is also a matter of professional ethics.

When a doctor unnecessarily delays a patient, a lawyer repeatedly postpones a meeting, a consultant delays a report, a manager keeps employees waiting, or a service provider fails to honour a commitment, the issue is not merely poor time management. It reflects a failure to recognise the value of another person's life.

Every human being receives the same twenty-four hours in a day—the rich and the poor, the powerful and the powerless, the employer and the employee, the professional and the customer. What differs is how those hours are used and what consequences arise when they are lost.

A culture that casually wastes the time of others is ultimately wasting the collective potential of society.

From Time Management to Time Respect

India may therefore need to move beyond the conventional concept of time management.

Time management generally refers to managing one's own time efficiently. What society needs is something broader: time respect.

Time respect means recognising that every person's time has value. It means arriving when promised, keeping appointments, avoiding unnecessary queues, designing efficient systems, completing projects within reasonable deadlines, responding promptly to customers and ensuring that citizens are not repeatedly required to visit an office for a task that could be completed in one visit.

It means understanding that every unnecessary delay imposes a cost on someone.

Such a cultural transformation cannot be created merely through laws and regulations. It requires awareness, leadership, education and personal example.

The most important realisation is this:

When we waste another person's time, we are not merely wasting minutes. We are consuming a non-renewable portion of that person's life.

A nation that learns to respect time will inevitably become more productive, disciplined, competitive and humane.

Time Consciousness: A Way of Life

Time consciousness should become an integral part of individual life and institutional functioning.

Time has equal value for the rich and the poor. Yet the consequences of losing it may not be equal. While no individual or institution can eliminate every delay or achieve perfect time management, no one should knowingly waste another person's time without reason or accountability.

Time is not merely a measure used to schedule daily activities. It is a fundamental resource within which every human, economic and social activity takes place.

It is:

• a factor of production;
• a factor of service;
• a determinant of productivity and efficiency;
• an influence on the quality and cost of living; and
• a resource that cannot be stored, recovered or recreated once lost.

The value of time and the consequences of wasting it should therefore become part of our educational system. Children should be introduced to time consciousness at an early age. As they progress through school, higher education and professional training, they should learn that punctuality is not merely a personal virtue—it is respect for another person's time. They should understand that efficiency is not only about saving money but also about saving people's valuable hours, and that delays carry real opportunity costs.This understanding should continue throughout life. Workplaces, professional institutions, government departments, businesses, hospitals, banks, educational institutions and social organisations should all develop a culture in which time is consciously respected.

The Objective: Eliminate Avoidable Waste

India is a vast country with enormous diversity in geography, population, economic conditions, infrastructure and social circumstances. Delays and difficulties cannot be eliminated completely. Perfect time management may be impossible. But time consciousness is possible.Continuous improvement is possible. Greater efficiency is possible. Honesty, transparency, sincerity and accountability are possible.When these values are combined with better planning, technology, infrastructure and institutional discipline, India can achieve a progressively higher level of efficiency.The objective, therefore, should not be perfection. It should be the elimination of avoidable waste of time.

Every unnecessary queue reduced is a gain.

Every unnecessary journey avoided is a gain.

Every administrative procedure simplified is a gain.

Every project completed on schedule is a gain.

Every hour saved for a daily-wage worker is a gain.

Every delay prevented in a hospital is a gain.

Every minute saved for a citizen is a gain.

Every day saved in completing a public project is a gain for the nation.

These gains may appear small individually, but collectively they can create enormous economic and social value.

Time Consciousness as a Dimension of Human Development

Time management, at the individual level, is ultimately self-management. No person can manage time itself. Time moves continuously and impartially, whether we use it wisely or waste it. What we can manage is ourselves—our thoughts, priorities, actions, habits and responses within the time available to us.The concept of time should therefore perhaps be imbibed as an integral part of human consciousness.The body enables us to act. The mind enables us to think and feel. The intellect enables us to discriminate and decide.

Time consciousness enables us to understand when and how those actions, thoughts and decisions should be undertaken. This does not mean living under constant pressure of the clock. It means developing an awareness of timeliness, sequence, priority, opportunity and responsibility.Children should be taught not merely to "save time" but to respect time—their own time and that of others. In institutions, time consciousness can promote punctuality, efficiency, accountability and respect for public resources. In economic life, it can improve productivity and reduce the enormous social cost of delays and inefficiency.

The clock measures the passage of time. The calendar records its cycles. But human consciousness gives time its practical value through the way we live and act within it.Perhaps, therefore, time consciousness should be recognised as an essential dimension of human development, alongside physical health, emotional maturity, intellectual ability and moral responsibility.

Towards a Time-Conscious India

India's future requires not merely better time-management techniques but a deeper Time Consciousness Movement—a cultural transformation in which individuals and institutions instinctively understand that time has value and that its responsible use is a collective responsibility.

The question we should ask is not merely:

"How much money will this save?"

We should also ask:

"How much time will this save for another human being?"

That question, if asked sincerely and consistently, could transform governance, business, public services and everyday life.

The ultimate objective is simple: to create a society in which people do not casually waste the time of others.

Time does not belong to us. We belong to time—and to the eternal flow of Nature.

A Time-Conscious India will not be a society obsessed with the clock. It will be a society that understands the value of human life, respects the time of others, uses resources responsibly and strives continuously for greater efficiency, productivity and human dignity. To quote swami Sivananda Saraswati  "Life is a link in the Chain of time. If you  waste time, You waste Life. Time is most precious. Trifle not with time."  S

                  Samastha Loka Sukhino Bhavanthu.

T V G Krishnan

( Personal Views)

A Vision for Kerala's Economic Transformation

 A Vision for Kerala's Economic Transformation

Developing  Kochi as an International Financial and Forex Trade Hub under the auspices of RBI.

Introduction

India's aspiration to become a developed nation by 2047 requires the emergence of globally competitive regional financial centres that complement the country's expanding role in international trade and finance. Kerala, blessed with strategic geographical advantages, a highly educated workforce, a globally connected diaspora, world-class ports and airports, and a long history of maritime commerce, possesses all the essential ingredients to become one such centre. A practical first step would be the establishment of a "Kerala International Economic and Financial Development Council", chaired by the Chief Minister with representation from the Reserve Bank of India, the Union and State Governments, financial institutions, ports, industry, academia and the overseas Indian community. Such a Council could prepare and implement a long-term strategy for transforming Kerala into India's leading maritime, financial and knowledge economy by 2047. Kerala with all its resources, talents , and potentials capable of reaching any levels of competence in any field cannot and should not lag behind any other state of India in making India the Great and achieving its Vision Of Viksit Bharath early.

The commissioning of the Vizhinjam International Seaport presents a historic opportunity to create a new economic architecture for Kerala. While Vizhinjam can evolve into India's premier maritime gateway, Kochi can emerge as the State's international financial, foreign exchange and trade gateway under the leadership of the Reserve Bank of India. Together, these two growth engines can transform Kerala into a globally competitive maritime, financial and knowledge economy while contributing significantly to India's Vision of Viksit Bharat 2047.

Kerala's Competitive Advantages:

• Commissioning of Vizhinjam Port.
• India's expanding global economic role.
• Rapid growth of digital finance.
• Kerala's educated workforce and global diaspora.

Kerala combines a highly educated workforce, one of the world's largest overseas Indian communities, substantial annual remittance inflows, excellent maritime connectivity, modern logistics infrastructure, internationally recognised healthcare and tourism sectors, and strong human development indicators. Few regions possess such a unique combination of human capital, global connectivity and quality of life, providing a natural foundation for the emergence of an international financial and trade centre.

Vizhinjam can emerge as India's premier maritime gateway, while Kochi can evolve into the financial and commercial gateway of Kerala. Together, they can attract investments, facilitate international trade, strengthen logistics and create high-quality employment across the State.

 

Kochi: Kerala's International Financial and Trade Gateway to Arabian Sea

• Gulf economies
• Largest NRI base
• Existing banking ecosystem
• Cochin Port
• International Airport
• IT parks
• Growing startup ecosystem
• High literacy
• Stable social environment
• Availability of skilled professionals

Strategic Priorities

1. International Financial Services

• Foreign exchange markets
• International banking
• Treasury operations
• Trade finance
• Risk management
• Cross-border payments
• Offshore banking services

2. NRI Financial Ecosystem

• Global NRI Investment Centre
• Wealth Management
• Diaspora Bonds
• Remittance Innovation
• Venture Capital
• Start-up financing

3. Trade and Maritime Finance

• Export finance
• Shipping finance
• Marine insurance
• Port logistics
• Commodity trading
• International Trade Promotion Centre

4. Knowledge and Innovation

• FinTech
• Artificial Intelligence
• Digital Finance
• Blockchain
• Cyber Security
• Global Trade Research
• International Institute of Finance, Maritime Economics and Global Trade

5. Global Lessons to realise, understand, appreciate  and pursue.

• Singapore – integrated port, finance and logistics.
• Dubai – international trade supported by world-class infrastructure and business-friendly regulation.
• Hong Kong – gateway between domestic and global capital.
• Rotterdam – seamless integration of port operations, logistics and finance.

6. Knowledge economies are built on universities.

Kerala's universities, management institutions and technology centres can become partners in creating specialised programmes in international finance, maritime economics, logistics, FinTech, Artificial Intelligence and global trade. Even RBI can have a Chair in Cochin University to give a boost to knowledge Centre.

7. Governance Reforms

• Single Window Digital Platform
• Predictable regulatory environment
• Ease of Doing Business
• Fast dispute resolution
• Contract enforcement
• Transparent taxation
• Stable policy framework
• Public-private partnerships

8. Sustainable and Inclusive Development

• Green Finance
• Blue Economy
• Climate Finance
• ESG Investing
• Renewable Energy
• Circular Economy
• Sustainable Tourism

Kerala has a comparative advantage here. The proposed ecosystem can generate high-value employment for finance professionals, engineers, data scientists, lawyers, logistics specialists, researchers and entrepreneurs, while creating opportunities that encourage talented young Keralites to build careers within the State.

9. Expected Outcomes

• Multiply  exports by 2035.
• Position Kochi among Asia's leading regional financial centres by 2047.
• Generate  high-quality jobs.
• Increase Kerala's share in India's exports.
• Become India's leading NRI financial services hub.
• Develop South India's largest FinTech ecosystem.
• Enhance India's foreign exchange earnings.
• Strengthen financial inclusion and innovation.

The Reserve Bank of India, through its Kochi office, could progressively facilitate the development of a regional ecosystem for international banking, foreign exchange operations, trade finance, financial innovation and regulatory excellence, while continuing to discharge its core central banking responsibilities. Such an initiative can become a catalyst for accelerating Kerala's economic transformation while contributing to India's growing role in the global financial system. Kochi can serve not only Kerala but the entire southern region of India in international banking, trade finance, foreign exchange, maritime finance, and NRI financial services. This broader perspective aligns the proposal more closely with national priorities and is likely to receive greater attention from policymakers. Kochi enjoys an exceptional regional connectivity. Its proximity to Coimbatore, the ports of Tuticorin and Mangalore, extensive road and rail networks, an international airport and strong tourism appeal position it naturally as a gateway for trade, finance and commerce across southern India. Combined with Kerala's cultural heritage, healthcare excellence and tourism potential, Kochi can evolve into a vibrant centre for business, investment and international engagement.

Conclusion

By combining visionary leadership, sound institutions, efficient governance and sustained public-private partnership, Kerala can transform itself into a globally respected centre of finance, maritime commerce, innovation and sustainable development. This vision calls for long-term thinking, institutional coordination and sustained implementation. Kerala possesses the human capital, global connections and strategic location needed to realise this opportunity. The time has come to convert these enduring strengths into a globally competitive economic future. Such a transformation would not only fulfil the aspirations of the people of Kerala but also contribute meaningfully to India's journey towards Viksit Bharat 2047. In doing so, Kerala can truly become not only God's Own Country in its natural beauty, but also a globally admired model of prosperity, opportunity, good governance and quality of life.

Samastha Loka sukhino Bhavanthu

TVG Krishnan

(personal Views).

  

"Viksit Bharat 2047: From Reform to National Transformation."

                   "Viksit Bharat 2047: From Reform to National Transformation."

"GOVERNMENT IS IN A REFORM EXPRESS PHASE AND REFORM IS NOT JUST REVENUE CENTRIC BUT CITIZEN CENTRIC. REFORMS SHOULD BE BROUGHT IN ALL ASPECTS OF SOCIETY BAND NOT JUST IN THE ECONOMY. LAWS TO BE FOR CITIZENS CONVENIENCE, NOT TO HARASS. EASE OF LIFE AND EASE OF DOING BUSINESS ARE TOP PRIORITIES OF THE GOVERNMENT.

                                                                                                 PRIME MINISTER NARENDRA MODI. 

The vision of Viksit Bharat 2047 represents far more than economic progress. It offers an opportunity to build a nation founded on ethical governance, responsible citizenship and inclusive prosperity. When combined with India's timeless philosophy of Vasudhaiva Kutumbakam—the whole world as one family—it provides a comprehensive framework for human welfare.

The most effective means of achieving these objectives are meaningful governance and a disciplined society. These are the foundations of welfare for all.To realise this vision, India must consider to have a National Agenda encompassing:

• Combating corruption, black money and inflation

• Leveraging Artificial Intelligence for transparent governance

• Institutionalising independent social audits

• Strengthening administrative accountability

• Establishing a regulatory framework for healthcare and home healthcare

I• Promoting civic discipline and citizen responsibility

• Developing reliable data on employment, income , wealth creation and wealth distribution  across both formal and informal sectors

• Building a practical roadmap towards welfare for all.

The most effective means of achieving these objectives are meaningful   Ideas → Institutions → Incentives → Culture. Every lasting transformation begins with an idea. Ideas must evolve into institutions, institutions must create appropriate incentives, and over time these incentives shape culture.

Transformation is not an event but a continuous process requiring careful planning, public participation, education, monitoring, evaluation, and sustained political commitment. Around the world, societies have demonstrated that desirable behaviour can be cultivated when the right systems are established.

India's own experience offers encouraging examples.

Open defecation was once considered an unavoidable reality. Through sustained campaigns, infrastructure development and public awareness, behaviour changed across large parts of the country.

Digital payments were once rare. Today, they are part of everyday life because they are convenient, accessible and trusted.

The use of helmets and seat belts, though still not universal, has increased significantly over the past few decades.

Public awareness regarding cleanliness has improved considerably, even though civic infrastructure and enforcement still require strengthening.

Tax compliance has improved, wealth creation has expanded, employment opportunities have grown, and financial inclusion has widened. Yet considerable work remains to accurately capture employment, incomes and wealth in the informal economy, reduce tax evasion, prevent corruption, and curb the generation and circulation of black money.

These examples demonstrate that people are willing to change when the environment consistently encourages and rewards responsible behaviour.

The transformation  of India  therefore requires a national movement, not isolated reforms. It must be non-partisan, continuous and sustained over generations. Its purpose should extend beyond economic growth to building a culture of responsibility, integrity and accountability.

Income is income irrespective of its source, though policy implementation may appropriately recognise the unique characteristics of sectors such as agriculture. Public policy must remain fair, transparent and equitable while ensuring that no privilege undermines the larger national interest or imposes an unfair burden on honest citizens.

Institutions that Shape National Character

Five institutions have the greatest influence in building such a culture.

The family, where honesty, discipline and respect for others are first learned.

Schools and universities, where civic responsibility should receive equal importance alongside academic excellence.

Government, public institutions, public sector enterprises, corporate organisations and private institutions, which must lead by example through transparency, accountability and ethical leadership.

Business and industry, which should regard ethical conduct as a long-term competitive advantage rather than a compliance burden.

Civil society and the media, which should celebrate integrity as vigorously as they expose wrongdoing.

An equally important pillar should be Independent Social Audit, which can objectively evaluate the contribution of public institutions, private organisations and civil society to national welfare and social development.Independent Social Audit should function as a constructive mechanism for continuous performance evaluation, measuring not merely expenditure but outcomes, citizen satisfaction and long-term social impact.

A National Mission for Ethical Governance

Good governance costs very little compared with the enormous social and economic benefits it creates. The real obstacle is seldom a lack of financial resources; it is the absence of sustained commitment.India has successfully launched national missions for literacy, sanitation, digital inclusion, financial inclusion and renewable energy.

Why should it not now launch a National Mission for Ethical Governance and Civic Responsibility? Such a mission could integrate:

• Artificial Intelligence for transparent governance. Artificial Intelligence should not merely automate administration; it should improve transparency, reduce discretion, detect fraud, support evidence-based policymaking and enhance citizen services while safeguarding privacy and accountability.
• Administrative reforms
• Independent social audits should be institutionalised to ensure that the governance system delivers the outcomes expected of public institutions. Such audits should objectively assess whether the actions and inactions of both institutions and individuals contribute to efficient, transparent, and accountable governance. Their primary purpose should be to ensure that public policies and services generate the maximum possible benefit for society while preventing avoidable hardship, inconvenience, or suffering to the people. By focusing on measurable outcomes, accountability, and continuous improvement, independent social audits can become a powerful instrument for strengthening public trust, enhancing governance standards, and promoting the welfare of all.
• Ethical education
• Citizen participation
• Performance evaluation based on measurable social outcomes

The objective would not be instant success but gradual transformation over an entire generation.

A Cultural Transformation

What the nation ultimately needs is a cultural transformation founded upon noble thoughts, noble words and noble deeds, leading to excellence in action, happiness, welfare for all, and a peaceful, harmonious and prosperous society.

Such a philosophy can become the strongest foundation for Viksit Bharat 2047 and eventually for Vasudhaiva Kutumbakam. History teaches us that societies do change. The real question is not how transformation occurs, but who begins it and who persists long enough for it to become part of a nation's character. Every great transformation begins when someone refuses to accept that the present condition is permanent. New ideas are often dismissed at first, but persistent ideas have a remarkable ability to become public policy. In many ways, the history of civilisation is the history of ideas whose time eventually arrived.

The nation possesses abundant talent and resources. The task before us is to strengthen the values, institutions and civic culture that enable these strengths to flourish. If Viksit Bharat 2047 is to become more than an economic milestone, it must evolve into a national movement founded on ethical governance, responsible citizenship and institutional excellence. Economic reforms create prosperity; cultural and ethical reforms ensure that prosperity benefits every citizen. Together, they can enable India to emerge not only as a developed nation but also as a global example of peace, justice and human welfare. The only objective on National Transformation is  all our ideas , strengths and  actions should bring out well performing institutions ensuring welfare for all in letter and spirit. 

Ultimately, the presence of the Divine  should get reflected wherever there is purity of thought, integrity in action, cleanliness, compassion, justice and harmony with nature. A society founded on these values becomes not only prosperous but also peaceful, secure and worthy of being called one family.

Samastha Loka Sukhino Bhavanthu. 

TVG Krishnan

(personal Views)

Why not we have a Social Audit to enhance the quality of Public Services ?

 

Performance Evaluation of Public Services Through Independent Social Audit

                                 "Strive not to be a success, but rather to be of value."

India has built one of the world's most vibrant democratic systems. Our Parliament and State Legislatures comprise experienced public representatives, distinguished professionals, social activists, accomplished women and men, intellectuals, and individuals who have excelled in diverse fields of public life. The country is also blessed with an independent judiciary, competent administrators, renowned scientists, economists, engineers, doctors, educators, artists, sportspersons, and professionals who have contributed significantly to nation building. 

India's achievements in science, technology, medicine, space research, finance, industry, culture, sports, literature, and spirituality have earned worldwide recognition. Our civilisation, heritage, and philosophy continue to command respect across the globe. Perhaps no other nation of comparable diversity has succeeded in preserving such remarkable unity amidst differences of language, religion, customs, and traditions.

Yet, despite possessing such immense intellectual capital, institutional strength, and human potential, an important question continues to arise in the minds of thoughtful citizens:

Has our progress matched our potential?

Many would agree that while considerable progress has undoubtedly been achieved, the outcomes often fall short of what the nation is capable of delivering. There remains a significant gap between policy formulation and actual public welfare. This gap deserves careful examination, not with the intention of criticism, but with the objective of continuous improvement.

The time has therefore come to introduce a comprehensive system of performance evaluation of public institutions based on measurable outcomes rather than merely on activities or expenditure.

An Independent National Social Audit Framework

India may consider establishing an Independent National and State Social Audit Commission through suitable legislation.

The Commission should consist exclusively of eminent persons of unquestionable integrity and proven excellence drawn from diverse fields such as:

• Public administration
• Judiciary
• Engineering
• Medicine and public health
• Economics and finance
• Education and academic research
• Science and technology
• Journalism and media
• Social service
• Agriculture and rural development
• Environmental sciences
• Industry and public sector management

Members should be selected solely on the basis of their distinguished contribution to national development, professional competence, independence, integrity, and public credibility.

To maintain complete impartiality, the Commission should function as an independent statutory body with adequate constitutional and administrative safeguards.

Scope of Evaluation

The Commission may periodically evaluate the performance of major public institutions, including:

• Parliament and State Legislatures
• The Supreme Court, High Courts, and subordinate judiciary
• The Reserve Bank of India
• Public Works Departments
• Electricity Boards and Power Utilities
• National and State Highway Authorities
• Indian Railways
• Public Sector Undertakings
• State Government enterprises
• Municipal and local bodies
• Regulatory authorities
• Other public service institutions

The purpose would not be fault-finding, but identifying strengths, weaknesses, opportunities for improvement, and best practices.Value addition to lead a dignified quality of life is highly invaluable.

Performance Parameters

Evaluation should focus on outcomes that directly affect citizens' lives rather than merely administrative processes.

Some of the important parameters may include:

• Improvement in citizens' Quality of Life Index
• Accessibility, affordability, and quality of public services
• Timeliness and efficiency of service delivery
• Transparency and accountability
• Reduction in corruption and leakages
• Financial prudence and value for public expenditure
• Citizen satisfaction
• Environmental sustainability
• Inclusiveness and social justice
• Innovation and adoption of technology
• Long-term contribution to national development

Each institution should be assessed against clearly defined benchmarks and measurable indicators.

From Expenditure to Outcomes

Governments often report the amount spent, the number of schemes launched, or infrastructure created. While these are important, the real measure of success lies in answering a more fundamental question:

How much has the quality of life of the people improved?

Every public programme should ultimately be evaluated in terms of the welfare it creates, the dignity it restores, the opportunities it generates, and the confidence it inspires among citizens.

An Institution That Must Deliver

The proposed Commission should never become another ceremonial body or an additional layer of bureaucracy. Its recommendations must be objective, practical, measurable, and time-bound. Reports should be placed in the public domain and discussed by Parliament and State Legislatures so that corrective action becomes an integral part of democratic governance.

The objective is not to criticise institutions but to strengthen them. Continuous evaluation is the hallmark of every successful organisation. A nation aspiring to global leadership must also continuously assess its own performance and strive for higher standards.

Conclusion

India possesses extraordinary talent, capable institutions, and immense national strength. If these resources are regularly evaluated through an independent, transparent, and outcome-oriented social audit system, governance can become more responsive, efficient, and accountable.Ultimately, the success of every public institution should be judged not by the volume of its activities, but by the extent to which it improves the lives of the people.

A nation committed to periodic self-evaluation is a nation committed to continuous progress. Such a framework would not only strengthen democracy but also move India closer to the ideal of Vasudhaiva Kutumbakam—where governance serves the welfare of every citizen and contributes to the well-being of humanity as a whole. What the nation needs today is not merely economic progress or technological advancement, but a profound cultural transformation. Such a transformation must inspire people to nurture noble thoughts, perform noble deeds, and uphold the highest standards of integrity, compassion, and public service.When individuals, institutions, and governments are guided by ethical values and a genuine commitment to the common good, the results are reflected not only in material prosperity but also in the happiness, dignity, and well-being of every citizen. Good governance, social harmony, and responsible citizenship become natural outcomes of such a culture.

A society built on truth, justice, mutual respect, and selfless service creates an environment of peace, serenity, and trust. It fosters confidence among people, strengthens national unity, and enables sustainable progress.The true measure of a nation's greatness lies not merely in its wealth or power, but in the character of its people and the values they practise. A cultural renaissance founded on noble thoughts, noble deeds, and excellence in action can lead to a society where welfare reaches all, harmony prevails, and every individual has the opportunity to live with dignity, peace, and fulfilment.

     'Aim for the best , work for the best , enjoy the excellent  outcome  and have the joy for ever.' 

     

  Samastha Loka Sukhino Bhavanthu. 

TVG Krishnan

(personal views).

Time for a Regulatory Framework For Home Services in India.

 

Time for a Regulatory Framework for Home Healthcare Services in India

"The true measure of a society is how it cares for its most vulnerable."

This article is prompted by recent media reports highlighting concerns regarding the safety and accountability of certain day and health care services. While investigations will determine the facts in individual cases, such incidents underline the urgent need for a comprehensive regulatory framework governing home day care and home healthcare services across India.

Modern society has evolved in ways that place greater emphasis on individual freedom, mobility, professional aspirations, and personal convenience. Whether one approves of these changes or not, they are realities that cannot simply be reversed. Home healthcare services have therefore emerged not as a luxury but as a social necessity aiming  at adding to the welfare of the people. Their contribution is significant. They reduce pressure on hospitals, enable patients to recover in familiar surroundings, improve the quality of life of elderly citizens, and often provide compassionate support where families are unable to do so. As India's population ages, the demand for such services will only continue to increase.However, the rapid expansion of this sector has also exposed serious concerns.

Unlike many other essential services, home healthcare remains largely fragmented and unevenly regulated. Service providers vary widely in standards, qualifications, pricing, training, accountability, and grievance redressal mechanisms. Families often engage caregivers with limited information regarding their credentials, experience, or reliability. Since these services are rendered within private homes, the need for trust and accountability becomes even more critical.

The absence of a comprehensive regulatory framework has allowed wide disparities in service quality. Registration charges, placement fees, caregiver salaries, agency commissions, and other costs are frequently determined solely by market forces, leaving families with little bargaining power. In many cases, affordability has become a major challenge, particularly for middle-income households that do not qualify for government assistance yet cannot comfortably bear the escalating costs. 

Healthcare inflation, coupled with rising food prices, accommodation expenses, transportation costs, and wages, has substantially increased the financial burden on families caring for elderly or chronically ill members. What is fundamentally a humanitarian service is gradually becoming prohibitively expensive for many who genuinely need it.

The sector also presents challenges relating to patient safety, caregiver training, ethical conduct, privacy, insurance, and legal liability. While many agencies provide excellent services with dedication and professionalism, others operate without adequate supervision, creating risks for vulnerable individuals who depend entirely on their caregivers. The time has therefore come to establish a comprehensive regulatory framework for home healthcare services in India.

Such a framework should include:

• Mandatory registration and licensing of all home healthcare agencies.
• Minimum standards for caregiver education, training, certification, and periodic skill development.
• Background verification and police clearance for personnel deployed in homes.
• Transparent pricing guidelines to discourage arbitrary charges while allowing reasonable commercial viability.
• Standardised contracts clearly defining responsibilities, liabilities, working hours, leave, and replacement policies.
• Periodic inspections, quality audits, and accreditation mechanisms.
• A robust grievance redressal system for patients, families, caregivers, and service providers.
• Appropriate insurance coverage for both caregivers and patients.
• Ethical guidelines protecting dignity, privacy, confidentiality, and the rights of vulnerable persons.
• Integration of technology, including digital records, emergency response systems, and AI-enabled monitoring, while safeguarding personal privacy.
• Data collection will become easier for evaluating the progress in the welfare of the people and assessing the quality of  their life.  

Regulation should not be viewed as interference with business. On the contrary, it will strengthen the credibility of genuine service providers, eliminate unscrupulous operators, inspire public confidence, and create a healthier and more sustainable industry. Regulation is an essential step to move forward and upward to reach the welfare state systematically and qualitatively. 

India has successfully developed regulatory institutions for banking, insurance, securities markets, telecommunications, education, and healthcare. A rapidly expanding home healthcare sector, directly serving millions of vulnerable citizens, deserves similar institutional attention.

Ultimately, a civilised society is judged not merely by its economic growth or technological achievements but by the dignity, safety, and compassion it extends to its elderly, sick, and disabled citizens.

Home healthcare has become an indispensable pillar of modern healthcare delivery. It is now time to ensure that this noble service is governed by transparency, accountability, affordability, ethical standards, and professional excellence. A well-designed regulatory framework would protect patients, support caregivers, encourage responsible service providers, and ensure that compassion remains the guiding principle of home healthcare in India. From this angle the concerned authorities can possibly consider the following:

1 The creation of a National Home Healthcare Regulatory Authority or  the responsibility can be entrusted to an existing body under the Ministry of Health and Family Welfare.

2 Ensuring  caregiver welfare explicitly. The fact that  caregivers themselves often work long hours with inadequate training, limited social security, and little legal protection. Hence there is an inevitable need that regulation should also improve the professional status and welfare of caregivers . This approach can definitely add credibility and give a boost to the welfare of all needy people . 

3. Appropriate Tax incentives to All Associated Institutions, care givers and care takers can work wonders to benefit the Government and people as well.  

"A nation that seeks to become a global leader must also aspire to become a global example in the care and protection of its most vulnerable citizens."

Samastha Loka Sukhino Bhavanthu.  

TVG Krishnan

( Personal Views)

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