NEED FOR CORRUPTION FREE BANKING IN INDIA

Introduction: Corruption is dishonest behaviour or abuse of entrusted power for private gain. It starts with the tendency of using public office for some personal benefit, implies the failure of ethics and erodes trust, weakens democracy, hampers economic development, undermines democratic institutions slows economic development, contributes to governmental instability and further exacerbates inequality, poverty, social division and the environmental crisis. Corruption is a complex social, political and economic phenomenon that affects all civilisations and attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law and creating bureaucratic quagmires whose only reason for existing is the soliciting of bribes. Economic development is stunted because foreign direct investment is discouraged and small businesses within the country often find it impossible to overcome the "start-up costs" required because of corruption.

- Dr. Deepak Kumar

Corruptions can be in many forms: 

Extortion: It is the use of threats or coercion to obtain money or favours

Nepotism: It is the awarding of jobs and promotions based on family relationships

Cronyism: It is the favouring of friends and associates

Fraud: It is the intentional misrepresentation of facts

Money laundering: It is the concealment of illegally obtained funds

Embezzlement: It is the misappropriation of funds

Misuse of funds: It is the unauthorized use of funds

Bribery: It is the act of offering, giving, soliciting, or receiving of any item of value as a means of influencing the actions of an individual holding a public or legal duty

Influence peddling: the use of position or political influence on someone's behalf in exchange for money or favours

The Corruption Perceptions Index (CPI) released by Transparency International is the most widely used global corruption ranking in the world. It measures how corrupt each country's public sector is perceived to be, according to experts and business people. As per Corruption Perception Index (CPI) 2023, India is on 85th rank out of 180 country with score of 40 out of 100.

Causes of Corruption:

Lack of Transparency

Lack of accountability

Actions and decisions are shielded from public scrutiny

Weak Institutions and ineffective legal frameworks

A perception of impunity due to the inadequate punishment of corrupt individuals

Low Salaries and Incentives to Public officials

Bureaucratic Red Tape