Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor – India Real Time – WSJ

Firozaben, a nurse at an upscale clinic here, opened an account at the state-owned Bank of Baroda Ltd. in December, attracted by the promise of an overdraft provision and accident- and life-insurance policies—all for no fee, courtesy of a government program to bring India’s masses into the banking system.

The same month, Mohammad Assalam Ansari, a tailor, traveled to an account-opening “boot camp” run by the bank. He says he had to pay 100 rupees before a clerk would give him an application form. Despite this, he says his application was rejected; he isn’t sure why.

Their stories reflect both the promise and the weakness of an ambitious program by Prime Minister Narendra Modi to widen access to financial services to the country’s poor. The goal is to make India less cash dependent, shrink the black economy, reduce corruption and boost growth.

via Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor – India Real Time – WSJ.

Advertisements

3 Comments to “Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor – India Real Time – WSJ”

  1. Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor –

    The example of bribe (as given above) has surprised me, and is a disgrace.

    It appears such practices are considered as the routine working of some officials (who are employed to help the public) should be dealt with strongly and immediately, and public should be encouraged to complain without any fear, to eradicate such practices.

    Like

    • @Ramesh – perhaps India should initiate an anti-corruption campaign that has been going on in China for the past two years. The result has been several ministers, senior civil servants, senior military personnel and some leading business people have been convicted and jailed and many more are being investigated.

      Ironically, the most recent Transparency International corruption perception index – https://www.transparency.org/cpi2014/results – placed China worse than the year before! It ranked 100 out of 174, previous year 80. India ranked 85, previous year 94. Denmark ranked 1 and Somalia ranked 174, both years. My reading is that as the index is one of perception and not measured objectively, people’s perception is that China is worse because of so much exposure and cases. My own feeling (based on no facts) is that the index should show China better than before rather than worse.

      Like

      • Thank you for your observations on my comments on“Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor”

        Whilst I agree with you that India should do something like Initiate an anti-corruption campaign that has been going in Chine for the past two years, I feel that may not be effective! This is because India operates in much cherished democratic system in contrast to one party state China. In India, everything has to be done in a set procedure (approved in a democratic manner) and then there is another problem (especially in the public sector) that Trade Unions will back the workers, even if they are in the wrong!! Such old and corrupt practices are the main cause/and barriers get in way of progress for the betterment for the poor.

        No doubt, India should do something urgently to eradicate this aspect of India working way in the interest of the India’s reputation and progress in this fast moving world.

        Finally, though I have not even read the recent Transparency International corruption perception index (the online link you have kindly sent), however, I would say that with regards to ones perception (and not measured objectively) it differs from person to person and of course from one country to another! In conclusion, I can say that any Transparency Perception Index can not be applied universally.

        Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India

%d bloggers like this: