Institutions Must Act with Conscience -Not Convenience RESTORE TRUST IN ALL INSTITUTIONS.

 Institutions Must Act With Conscience—Not Convenience RESTORE TRUST IN ALL INSTITUTIONS.

The recent observations of the Supreme Court of India on the functioning of the Real Estate Regulatory Authority (RERA) are not just a comment on one sector—they are a warning to all institutions, public and private. They remind us that accountability cannot be optional and that conscience cannot be selective.

Let us speak plainly. A system that bends before money, influence, and power cannot deliver justice. When laws are twisted, delayed, or diluted to suit the influential, institutions lose their legitimacy. Corruption is no longer an exception—it is becoming a tolerated practice. This must stop.

Our civilisational values, reflected in Sanatan Dharma, place truth, duty, and righteousness at the centre of life. Institutions too must live by these values. Their purpose is not to serve the powerful, but to protect the ordinary citizen and uphold fairness.

The resilience of the common citizen is extraordinary—but it must not be exploited. People cannot be expected to carry the burden of institutional failure while a few benefit from manipulation and privilege. Every delay in justice, every act of negligence, and every misuse of authority directly harms public trust.

India’s aspiration of a Viksit Bharat will remain only a slogan unless institutions act with integrity, courage, and clarity of purpose. Laws and structures already exist. What is missing is honest implementation and moral responsibility.

The call now is clear and urgent:

• Institutions must function in letter and spirit—not selectively
  
  

• Regulators must regulate without fear or favour
  
  

• Authorities must act with transparency and accountability
  
  

• Private entities must remember their social responsibility, not just profit

• All Professionals Associated with Institutions must deliver adhering to the Ethics and Values in letter and spirit.

• The performance of all Housing and Estate related Institutions should be assessed and certified by RERA and ensure that they have ensured and adhered to all statutory and other requirements in letter and spirit.
  
  

This is not merely administrative reform—it is a moral responsibility.

Those entrusted with authority must introspect and act now. The nation does not need more promises; it needs principled action. When institutions act with conscience and commitment, justice will prevail, trust will be restored, and the vision of national progress will become a lived reality for every citizen.Institutions should learn to earn respect, regards, goodwill and trust through dedicated , committed service with skill knowledge and understanding of Institution's , Vision and Mission, role and responsibility aligning well with Nation's dream of realisation of Viksit Bharat by the year 2047.Each and every Institution's performance should be subject to evaluation and rating based on their performance and contributions to the nation's economic progress based on well meaning and achievable parameters even by adopting Artificial Intelligence in all areas of delivery of goods and services.

Sarve Jana Sukhino Bhavanthu.

Dr T V Gopalakrishnan

(Personal Views)

Indian Economy and Financial System in the Age of AI: Pathway to a Viksit Bharat by 2047

 

Indian Economy and Financial System in the Age of AI: Pathway to a Viksit Bharat by 2047

India is one of the most dynamic countries, and the scale of the opportunity IT HAS WITH AI IS IMMENSE.

Sundar Pichai

Chief Executive Officer, Google.

1. Background and Context

India stands at a defining economic moment. With strong GDP growth, expanding infrastructure, and globally recognised digital public infrastructure such as India Stack and Unified Payments Interface, the country has built a solid macroeconomic base.

At the same time, the rapid rise of Artificial Intelligence (AI) is reshaping the global economic and financial landscape. For India—where the services sector, particularly IT, has been a major growth engine—this transformation presents both opportunity and risk.

As India aspires to achieve “Viksit Bharat” by 2047, the policy challenge is to ensure that technological transformation leads to inclusive, employment-rich, and ethically grounded development.

2. Current Assessment of the Economy and Financial System

2.1 Macroeconomic Strengths

• Sustained high growth trajectory relative to global peers
  
  

• Strong public investment in infrastructure
  
  

• Improving tax buoyancy and formalisation
  
  

• Resilient external sector
  
  

2.2 Financial System Stability

Guided by the Reserve Bank of India, India’s financial system has strengthened significantly:

• Reduction in Non-Performing Assets (NPAs)
  
  

• Improved capital adequacy of banks
  
  

• Expansion of digital finance and fintech ecosystem
  
  

• Greater financial inclusion through Jan-Dhan–Aadhaar–Mobile architecture
  
  

2.3 Structural Concerns

Despite strengths, several persistent issues remain:

• Employment generation lagging behind growth
  
  

• Income and regional inequality
  
  

• Stress pockets in NBFC and retail credit segments
  
  

• Slow judicial and regulatory resolution mechanisms
  
  

3. AI and IT Disruption: Implications for India

India’s globally competitive IT sector—represented by firms like Infosys and Tata Consultancy Services—is undergoing structural transformation due to AI-led automation.

3.1 Opportunities

• Productivity gains across sectors (health, agriculture, logistics, governance)
  
  

• Creation of new sectors (AI services, data economy, cyber security)
  
  

• Global leadership potential in digital public infrastructure and AI governance
  
  

3.2 Risks

• Displacement of mid-level IT and BPO jobs
  
  

• Wage stagnation in routine service roles
  
  

• Skill polarisation and widening inequality
  
  

• Concentration of economic power in high-technology firms
  
  

4. Key Policy Risks for the Next Two Decades

1. Jobless or Job-poor Growth
   
   

2. Skill Mismatch in the AI Economy
   
   

3. Financial Sector Exposure to Technology-led Disruption
   
   

4. Digital Divide and Unequal Access
   
   

5. Governance and Ethical Deficits in Technology Deployment
   
   

5. Strategic Policy Recommendations

5.1 Employment-Centric Economic Strategy

• Incentivise labour-intensive manufacturing and MSMEs
  
  

• Develop green economy jobs (renewable energy, climate adaptation)
  
  

• Strengthen urban employment programmes
  
  

5.2 National Human Capital and Skills Mission

• Universal foundational learning reform
  
  

• Large-scale reskilling for AI, robotics, and data systems
  
  

• Industry-academia collaboration for future-ready workforce
  
  

5.3 Financial System Deepening and Risk Management

• Strengthen supervision of NBFCs and fintech lending
  
  

• Expand long-term bond markets and pension funds
  
  

• Promote responsible AI use in credit scoring and risk analytics
  
  

5.4 AI Governance and Ethical Framework

India should emerge as a global leader in responsible AI by:

• Establishing national AI regulatory standards
  
  

• Ensuring transparency, auditability, and accountability
  
  

• Protecting data privacy and citizen rights
  
  

5.5 Institutional and Governance Reforms

• Faster judicial and contract enforcement systems
  
  

• Transparent and time-bound regulatory approvals
  
  

• Strengthened anti-corruption and accountability frameworks
  
  

6. Role of the State, Market, and Society

A Viksit Bharat requires coordinated action:

Stakeholder	Role
Government	Policy clarity, infrastructure, human capital investment
Private Sector	Innovation, employment generation, ethical AI adoption
Financial Institutions	Responsible credit expansion and risk management
Civil Society	Ensuring inclusiveness, accountability, and trust

7. Measuring Success Beyond GDP

Development must be evaluated not only by output but by  outcomes in terms of quantity and quality in the areas of

Employment

Access to healthcare and education
Financial security
Environmental sustainability
Trust in institutions for their delivery in terms of Statutory and moral Requirements.

Trust in the overall  Governance Standards in Legislative, Judiciary and Executive areas.
8. Conclusion

India has a historic opportunity to transform itself into a developed, equitable, and technologically advanced economy by 2047. However, this transition will not occur automatically through growth or technology alone.

It requires:

• Ethical governance
  
  

• Strong institutions
  
  

• Employment-oriented growth
  
  

• Human-centred technological adoption
  
  

AI can be a powerful accelerator, but only when guided by wisdom, regulation, and social responsibility.

A truly Viksit Bharat will not merely be a richer India—it will be a fairer, more humane, and more trustworthy society.

May the Artificial Intelligence along with the very prudential and providential application of Natural intelligence under the guidance of Spiritual Intelligence take the economy fast forward and provide the best of quality life keeping the  powerful and mighty nature in tact with the optimum use of  all its  energy .  

Loka samastha Sukhino Bhavanthu.

T V G Krishnan

(Personal Views) 

 

Depositors as Silent Stakeholders: Time to Restore Balance in Indian Banking

In the architecture of modern banking, one truth remains fundamental yet under-acknowledged: banks are sustained by depositors’ money. Every rupee lent, invested, or deployed by a bank originates from the trust reposed by millions of ordinary citizens. Yet, paradoxically, depositors remain the least protected and least rewarded stakeholders in the banking system.

This structural imbalance requires urgent attention if India is to build a truly resilient and equitable financial system on its path toward a “Viksit Bharat” by 2047.

The Unequal Burden on Depositors

Depositors today bear a silent but substantial burden:

• They receive interest rates that often fail to match inflation, eroding real savings. Even interest attracts Income tax is a very sad part.

• They indirectly absorb the consequences of non-performing assets, frauds, and weak credit appraisal.

• They face penalties and charges, including for not maintaining minimum balances.

• Their protection is limited to a modest insurance cover of ₹5 lakh per depositor through the Deposit Insurance and Credit Guarantee Corporation.

Despite providing the primary resource base of banks, depositors lack representation, voice, and adequate safeguards.

A Unique Sector Demands Unique Governance

Banks are not ordinary commercial enterprises. They deal with the most sensitive public resource—money—and the most dynamic asset—human trust. Equating banks with other businesses in governance philosophy is a conceptual error.

The regulatory framework led by the Reserve Bank of India has evolved considerably over time, but systemic issues persist:

• Risk is socialised, while decision-making is concentrated

• Returns to depositors are controlled, while inefficiencies in lending are tolerated though bad and recalcitrant  borrowers deserve a different treatment in depositors'  and all stakeholders of Banks' interest. 

• Transparency in charges remains uneven

In such a structure, depositors effectively subsidise inefficiency.

The Question of Charges and Penalties

The imposition of penalties for non-maintenance of minimum balances raises a fundamental ethical and economic question.

In an era of core banking, digital transactions, and negligible marginal cost of servicing accounts, such penalties—especially on small depositors—appear regressive and disproportionate. They resemble revenue extraction rather than genuine cost recovery.

Financial inclusion cannot coexist with punitive fee structures.

The Interest Rate Paradox

Savings bank deposit rates around 3–4 percent and term deposit rates in the range of 6–7.5 percent often fail to compensate for:

• Consumer inflation

• Food inflation

• Healthcare and education costs

• Increasing cost of living in urban India

Thus, depositors face financial repression in real terms, even while bearing systemic risk.

Governance Failures and Moral Hazard

Repeated cycles of large non-performing assets, frauds, and recapitalisation—particularly in public sector banks—point to deeper governance issues:

• Weak accountability in credit sanction

• Political or institutional interference

• Delayed recognition of stress

• Evergreening of loans

When losses occur, they are ultimately absorbed by taxpayers and depositors, creating moral hazard and eroding trust.

Rebalancing the System: A Policy Agenda

To restore equity and confidence in the banking system, a series of structural reforms are necessary:

1. Strengthening Depositor Protection

• Enhance deposit insurance coverage to ₹10–15 lakh

• Introduce risk-based insurance premiums linked to bank risk profiles

2. Ensuring Fair Returns

• Introduce inflation-linked deposit instruments

• Create a benchmark-linked floor rate for small depositors

3. Reforming Governance

• Professionalise bank boards with independent oversight

• Enforce accountability for large credit decisions

• Strengthen early warning and resolution systems

• Introduce  Incentive / penalty based on the rating of borrowers  and ensure that the cost of NPAs to banks are borne by banks and borrowers themselves. Heath of the banks is dependent on the health of borrowers and the health of the economy is dependent on the health of the banking and entire Financial system. 

4. Rationalising Charges

• Cap and standardise penalty charges

• Mandate zero-penalty basic banking accounts

• Ensure full transparency in all fees and commissions

5. Institutionalising Depositor Voice

• Establish Depositor Protection Councils

• Include depositor representation in policy consultations

6. Strengthening Supervision

• Real-time monitoring of large exposures

• Time-bound resolution of stressed assets

• Strict enforcement against fraud and wilful default

• Scope for AI based checks and balances to detect erratic and fraudulent entries. 

The Larger Economic Imperative

India’s aspiration to become a developed economy by 2047 rests critically on a stable, trusted, and efficient financial system.

Trust in banks is not built merely on capital adequacy or regulation—it is built on fairness to the smallest depositor.

If depositors begin to feel:

• under-rewarded,

• over-charged,

• and under-protected,

then the very foundation of financial intermediation is weakened.

Conclusion: Recognising the Silent Pillar

Depositors are not passive providers of funds. They are the silent pillars of the banking system.

A fair banking system must ensure that those who provide the foundation are:

• protected,

• respected,

• and reasonably rewarded.

Rebalancing the system in favour of depositors is not a concession—it is a necessity for long-term financial stability, ethical governance, and inclusive economic progress.

Only then can India’s banking system truly align with the ideals of equity, trust, and shared prosperity that underpin the vision of a developed nation.

T V G Krishnan

( personal Views)

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