Banks write offs at whose Cost? Have the stakeholders of Banks thought about it?

 Bank of Baroda Writes Off ₹35,715 Crore of Loans above ₹100 Crore, Refuses To Disclose Big Defaulters’ Names under RTI Money Life 19th Aug 2026.

This sort of write offs of bad loans using other stake holders funds in the bank who include depositors , good borrowers, employees, share holders and government has no justification what so ever. The situations led to write offs and the details of borrowers whose accounts have been written off technically in banks books should be made transparent as depositors' and employees' sacrifice definitely be much more than their affordability . Depositors are paid less than 7% for their FDs and less than 3.5 %for their Savings Bank deposits and thus the money saved by banks are passed on to big borrowers and eventually written offs as disclosed now. With this background being a reality , banks and borrowers have no moral right to get subsidised for their inefficiencies and business losses to make it good from the poor stake holders of banks. The depositors even have to pay Income tax on this meagre savings without even adjusting for inflation which is always more than the int rate. This is something very pathetic. It is time to fully justify and make it transparent as to what has happened to these borrowers and how and why the accounts became bad and why the banks and borrowers cannot think of some inbuilt mechanism to make up for such bad debts losses without hurting the innocent stake holders.

Is it that banks generate bad loans only to loot the stakeholders hard earned money given to banks to develop the economy?  

T V Gopalakrishnan

( modified version of this comment  was given in response to the Article on Bank of Baroda's write offs referred to above)

The Need for a Rare Feat to fix inflation and save the masses from high cost of living.

 Dear Sir,

                         

Apropos your article "Fiscally Fit to Beat Inflation" (editorial page, ET 19th Aug), the economy's strength is reflected in the rupee's value, impressive GDP growth, a strong fiscal balance and stable inflation. Unstable inflation kills the poorest of the poor, takes away the joy of living and leaves them unhedged against the ever-increasing prices of food items and the rising cost of living fuelled by continuous and unstoppable increases in the prices of oil, transport, education, insurance, medical care, and more. Perhaps the only way to fight inflation is to hedge the economy against fuel, food, fertiliser, and fiscal deficit by establishing separate price stabilisation funds. These funds would manage essential, inherently inflationary items whose prices are unfortunately linked to exchange rates dependent not only on poorly managed national socio-economic conditions but also international ones. Geopolitical uncertainties and international price movements of oil and other sensitive commodities like gold and silver, which the poor seldom use for their day-to-day lives, need to be factored in and managed effectively by a meaningful governance system. This would spare people from inflationary price increases on all their consumption items. Taxes should be divided into inflationary and non-inflationary categories. Levies should become extra taxes on non-inflationary items, insulating the majority of the common masses, this should become the standard for fiscal discipline.It is time to revisit the tinkering approach to the taxation policies. Policy reforms should closely associate with inflation/non-inflation, equitable wealth distribution, and sensitive geopolitical conditions influencing exchange rate stability and the movement of goods and services linked to unpredictable tariffs.      

T.V.Gopalakrishnan

Bengaluru 

( Letter Sent to the Economic Times). 

Governance is a universal and people centric Principle..

 Governance is a Universal and People-Centric Principle

Reforms and Regulation PM Speech

"We created a clear road map for reforms and the main direction has been -reforms at level of Governance! For this, we are not just changing Regulations, we are changing the entire philosophy of regulation. The decisions that change the country are those whose impact is visible on the ground , and are taken both the present and future in mind. " (ET dated 24th Aug)   

Freedom → responsibility → good governance → institutional performance → welfare of all.

Good governance is ultimately responsible human living organised through institutions, guided by values, disciplined by accountability and protected by the rule of law. Its purpose is to ensure that democracy delivers not merely government, but justice, social order, sustainable progress and a better quality of life for all. 

Democracy provides the mandate; governance provides the mechanism; accountability provides the discipline; and the rule of law provides the foundation. Together, they should convert a nation's vision into action, mission into performance and policies into meaningful outcomes.

Governance Beyond Government

Governance is not limited to government. It is a universal principle that applies wherever people have responsibilities, exercise authority, use resources or affect the lives of others:

Individual → Family → Institution → Society → State → Nation → Humanity

Every institution—public or private, commercial or non-commercial—should therefore be judged by four simple questions:

Purpose: Why does it exist?
Conduct: How does it discharge its responsibilities?
Performance: How effectively does it achieve its objectives and use its resources?
Social Value: What legitimate benefit does it create for people and society?

Thus:

Vision and Mission tell us what we intend to achieve.
Governance determines whether we achieve it.
Values determine how we achieve it.
Outcomes determine whether society benefits from it.

Values, Duties and Responsibility

Responsible governance begins with responsible human conduct. Nature provides resources universally; their use and distribution therefore carry a responsibility to ensure equity, sustainability and social justice.

Development should consequently mean:

Progress with social justice
Freedom with responsibility
Rights with duties
Authority with accountability
Resources with stewardship
Governance with measurable outcomes

Economic growth alone cannot be the measure of progress. The true measure is whether development improves the lives of people and creates opportunities for all to participate in its benefits. It is time for every individual and every institution to perform to its full potential and contribute to making  Viksit Bharat a reality. Our collective endeavour must be to build an India that is prosperous, just, inclusive and a true welfare State in every respect.

 When Governance Fails

Good governance should identify weaknesses early, correct failures and preserve public trust. When failures accumulate without correction, the progression can become:

Weak governance → Unresolved failures → Loss of trust → Loss of institutional authority → Non-compliance → Disorder → Persistent disorder → Conditions approaching anarchy

Anarchy may arise from many causes. But prolonged or systemic disorder within a functioning democracy is a serious test of governance. The wiser question is therefore not merely how to control disorder after it appears, but how to prevent the institutional and social conditions that allow it to emerge.

The People-Centric Test

Institutions ultimately exist to serve legitimate human and social purposes. Their success should therefore be measured not simply by their size, power, profit or survival, but by the value they create for people and society.

The ultimate test of governance is simple:

Does the way we govern our individuals, families, institutions, society and State enable people to live with dignity, exercise freedom responsibly, fulfil their duties, receive fair opportunities and participate meaningfully in the benefits of progress?

If the answer is increasingly yes, governance is working.

If the answer is increasingly no, there is a governance problem—however impressive the laws, policies and institutions may appear on paper.

Good governance is therefore not merely the administration of laws. It is the continuous conversion of democratic authority, ethical values, institutional responsibility and the rule of law into justice, social order, sustainable progress and a better quality of life for all.The impact of the Governance every where and in every Institution should be visible at the ground level in the overall welfare of the people .

Good governance is ultimately about serving people, strengthening institutions and ensuring that progress benefits society fairly and responsibly. I conclude this write up with a quote from Whats ap message widely circulated on the eve of 80th year of independence celebrated on the 15th Aug 2026. 

               "Freedom is not a legacy to celebrate ;it is a responsibility to protect".  

Samastha Loka Sukhino Bhavanthu.

T V G Krishnan

(personal Views)

New Generation Banking Challenges and Issues

A new-generation intelligence framework for banking

KYC to UYC, AI to MI to HI to Total Intelligence

Can All These Bring Ethics and Accountability to Digital Payments?

Digital payments, particularly through UPI, have grown by leaps and bounds, reaching levels that were almost unimaginable a few years ago. In large parts of the country, especially in the retail and mass-payment segments, the use of currency notes has declined substantially. This is a remarkable reflection of India's technological progress and, more importantly, the widespread acceptance of that progress by its people.

The growth of digital payments has enormous potential for the economy. It can improve transparency, reduce transaction costs, widen financial inclusion and gradually overcome several weaknesses associated with cash-based transactions and traditional administrative systems.

But technology, however advanced, is only a means. The more important question is whether technology can also help strengthen ethics, values, honesty, integrity and accountability in the financial system.provided technology is combined with human judgement and a deeper understanding of the customer.  From “Know Your Customer” to “Understand Your Customer”

The banking system has long operated on the principle of Know Your Customer (KYC). KYC is indispensable for establishing the identity and address of a customer and preventing the misuse of banking channels. But in the digital era, knowing who the customer is may no longer be enough. What may increasingly be required is “Understand Your Customer” (UYC).

Within the limits of privacy and legitimate banking practice, UYC could help banks understand a customer's normal transaction behaviour, financial patterns, likely vulnerabilities and significant deviations from established patterns. Artificial Intelligence (AI) can make such analysis possible on a scale that human beings alone cannot manage. This could help identify suspicious transactions, unusual transfers, possible account misuse and even genuine mistakes before they become difficult to rectify.

A Simple Example

Consider a customer of Bank A making a UPI payment through a third-party interface such as PhonePe and, through an inadvertent mistake, transferring money to an unintended beneficiary whose account is with Bank B. The customer realises the mistake and immediately approaches Bank A. Technically, the payment was authorised by the customer and the money has already moved through the payment system. The payer's bank may therefore have limited ability to reverse the transaction unilaterally. But should the matter necessarily end there?

Once the error is reported, the banking and payment ecosystem should, wherever legally permissible, have mechanisms to identify the transaction, alert the beneficiary bank, place an appropriate hold or caution and facilitate recovery when the circumstances establish that the payment was genuinely erroneous.

Technical authorisation should not, by itself, settle the larger question of ethical ownership and institutional responsibility. The beneficiary has received money which, in such circumstances, was never intended for him or her. The banking system should therefore endeavour to facilitate correction rather than simply treating the transaction as closed because authentication was successful.

The Reserve Bank of India, perhaps through appropriate mechanisms under its Banking Ombudsman framework, together with banks' own persuasion and moral-suasion approaches within permissible parameters, could consider workable arrangements for dealing with such cases. The objective should be simple: to help ensure that money ultimately reaches its rightful destination based on entitlement and legitimate obligation. The person not entitled or intended by the sender cannot be allowed to enjoy such wrong credits by any means. Human or technical error should not be allowed to override ethics and morality.

AI as a Second Line of Defence .

This is where AI can become a powerful second line of defence. AI can potentially detect unusual behaviour at the point of transaction—a sudden departure from established payment patterns, unusually large or repeated transfers, unusual beneficiary relationships or other warning signals. Depending on the risk involved and the regulatory framework, such signals could trigger an alert, confirmation or additional verification. More importantly, AI need not stop working once the transaction is completed.

In the post-transaction stage, technology could help trace the movement of funds, identify the beneficiary institution, establish the relevant circumstances and facilitate a structured resolution when a genuine mistake has occurred. Technology should therefore not merely make money move faster. It should also make mistakes easier to detect and rectify.

Fraud Prevention Requires More Than KYC . Frauds involving bank accounts, identity misuse, social engineering and exploitation of digital platforms are constantly evolving. KYC establishes who the customer is, but it does not necessarily establish whether a particular transaction is consistent with that customer's normal behaviour. That is the gap UYC could help address.At the same time, such an approach must never become an excuse for indiscriminate surveillance or intrusion into legitimate customer privacy. There must be clear safeguards, proportionality, transparency and accountability in the collection, analysis and use of customer information. The objective should be better understanding, not unnecessary intrusion.

AI Cannot Replace Human Intelligence .There is also a danger in believing that AI can solve everything. It cannot. AI can identify patterns, correlations and anomalies at extraordinary speed. But Human Intelligence (HI) provides judgement, context, experience, empathy and accountability.The objective should therefore not be AI replacing human beings, but AI strengthening human intelligence and institutional responsibility. A genuinely customer-oriented bank should be able to ask not merely:

“Was the transaction technically authorised?”but also “Does the transaction make sense in the context of the customer, and if something has clearly gone wrong, what responsibility can the banking system reasonably assume in helping to correct it?” That represents an important change in institutional thinking—from merely processing transactions to understanding their circumstances and consequences.

Market Intelligence Adds Another Dimension

There is yet another dimension that can make this framework much more comprehensive: Market Intelligence (MI). KYC tells the bank who the customer is. UYC helps it understand how the customer normally behaves. AI analyses patterns and anomalies, while Human Intelligence interprets what those signals actually mean. But a customer does not operate in isolation.

Market Intelligence can provide information about the environment in which the customer operates—industry conditions, markets, competitors, suppliers, customers, prices, demand, regulatory developments and emerging risks. 

A Powerful Application: Credit and NPA Prevention

This becomes particularly valuable in credit appraisal and NPA prevention. A borrower may have an excellent KYC profile and an apparently satisfactory account. Yet Market Intelligence may reveal that the borrower's industry is deteriorating, major customers are under stress, commodity prices have changed sharply, or the market itself is becoming increasingly unviable.

AI may simultaneously detect corresponding changes in the borrower's account operations. Human Intelligence can investigate and interpret the signals. The bank can then take appropriate corrective action before the problem develops into an NPA. The same approach could strengthen monitoring of the end-use of funds, early-warning systems and responsible lending. From Identification to Responsible Decision-Making.Thus, a much broader intelligence architecture begins to emerge:

KYC + UYC + MI + AI + HI = Total Intelligence

Each has a distinct role:

KYC identifies.

UYC understands.

MI contextualises.

AI analyses.

HI interprets.

Total Intelligence decides.

The concept is not to create a system that knows everything about everyone. Nor is it intended to create excessive surveillance. Its purpose should be to enable banks to make better, more responsible and timely decisions while respecting privacy, legitimate freedom and the rights of customers.

From Transaction Processing to Responsible Banking

No financial system can realistically be made completely foolproof. Human beings will always find new ways of circumventing systems. But an intelligent combination of KYC, UYC, Market Intelligence, AI and Human Intelligence could make banking considerably more preventive, transparent, resilient and accountable. India has already demonstrated that technology can transform the way millions of people transact. UPI is a powerful example of how rapidly people can adopt technology when it is convenient, inexpensive and accessible.

The next challenge is to ensure that trust keeps pace with technologyDigital payments should not merely be fast; they should be safe They should not merely be convenient; they should be accountable.They should not merely prevent fraud; they should also provide meaningful mechanisms for correcting genuine mistakes. And banks should not merely “know” their customers; they should increasingly understand them, while respecting privacy and individual freedom. Ultimately, technology should not be allowed to become an excuse for avoiding responsibility. The more powerful our technological systems become, the greater should be the emphasis on human values, ethical judgement and institutional accountability.

The real opportunity before the banking system is therefore not simply to build a more sophisticated digital payment system, but to build a more intelligent and responsible financial system.Technology has already changed the way India moves money. The next step is to ensure that it also strengthens the values with which money is handled.That may be the true meaning of moving from KYC to UYC, from AI and MI to HI, and ultimately towards Total Intelligence.

Samastha Loka Sukhino Bhavanthu. 

T V G Krishnan

(Personal Views)

Why not only Transaction Fee instead of Many other taxes?

 Dear Sir,

Why not only a transaction fee instead of many other taxes? Simplify taxes by removing various other taxes.

Apropos your editorial, "Why UPI Needs Transaction Fees" (ET Aug 7), UPI in India is a grand success and has become as good as a currency in circulation, eliminating the cost of printing hard currency, its storage, distribution  maintaining currency chests, and the quality of printed currency. UPI is faster and relatively safe.   Many other countries are adopting it because of its convenience, handling and comparatively better accounting, and tracking of information regarding how and where the money moves. This helps enable the building of a huge mine of information/data, assisting policymakers from a broader perspective. UPI's very success in India is because it carries no cost perhaps the only exemption seen in the whole system of transactions. If this is also brought under some levy,  it may catch on in such a way that the levying becomes attractive over a period, building inflationary expectations and adding to the cost of living without any escape route later on. If the very thought of MDR is not nipped in the bud, it may turn out to be an inevitable source of revenue like many others already in vogue. This could introduce unhealthy practices adding to the list of worries from administrative and policy angles.  If transaction fees can replace so many other taxes including Income Tax, no doubt that would be  a very welcome and transformative change worth pursuing.      

(  this letter addressed to ET )

T.V.G Krishnan

(personal views) 

( This letter was sent to ET ).

RBI has kept the rates unchanged in tune with the Market sentiments.

 Figures indicate economy is resilient, but fact remains that challenges to the economy from Politics, economics, social and technology ( PEST) angle  remain as defiant as ever. Added to these, the projected possible failure of the monsoon and geo political uncertainties also remain as challenges to keep the inflation and inflationary expectations under control. The Cost of production which is dependent upon monetary , fiscal and administrative policies also remains high as it is , without leaving any scope for reduction in the near future. Imported inflation always remains a challenge and maintaining price stability and economic growth through monetary policy alone is not sustainable is the reality. In these circumstances, the Present Monetary policy keeping the Policy Rates unchanged and maintaining RBI's stance Neutral itself can be considered as the most accommodative policy and the MPC has done an excellent job. The need to balancing the market sentiments has also been well factored into the policy announcement. 

T V G Krishnan

(this comment appeared in Money Life in response to the Article RBI Keeps Repo Rates unchanged Aug7,2026.)

Re

RBI MPC in a Dilemma

 Dear Sir 

Apropos the Article Count _ Counterpoint (ET 3rd Aug 26), the MPC is in a Catch 22 situation to decide on the policy change on rates in the background of continuing inflation ,inflationary expectations thanks to geopolitical uncertainties, failure of monsoon prospects and visible expectations of economic growth . The need of the hour is price stability which is a gambling not only on agricultural production, marketing ,distribution and monsoon but several other factors including laxity in governance and fiscal position. Cost of living and inflation are two parallel lines and cost of production is altogether another dimension dependent upon several linkages and incentives having both tax and administrative implications.

While MPC can have control on the Financial system through monetary policy  ,the Government having control on both Fiscal and administrative policies has to do lot of manoeuvring  to ensure economic growth keeping the prices stable defying the challenges from political Social and technological dynamics seen of late due to AI invasion every where. 

T.V.Gopalakrishnan

( email( Letter addressed to ET )

 

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."  

                  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)