It is a sad reality that there is widespread corruption in Public Services in our country. The Corrupt few are able to hold the dumb majority to ransom and constantly retard the economic might of this nation and preventing the country to assert its pride of place. It is well recognized that despite its vast natural resources, its time honoured civilization, and manpower resources rated as one of the best in the world, our country remains poor and backward on account of uncontrolled corruption at several levels of the Government and Public Services. The problem has grown into alarming magnitude as indicated by the following:

1. India is a corrupt country rated at index number 71 out of 90 countries in the Corruption Perception Index by Transparency International for the year 2001. It was 69 out of 90 in the year 2000.

2. That our Prime Minister has rated Terrorism and Corruption as the two prime threats facing the country.

3. Corruption as a serious national problem did not exist in India before the Second World War. But it has now reached appalling dimensions.

4. The spread of corruption in the country affects the lives of the poor and middle class people, more than the well to do. It undermines the productivity of our public enterprise, acts as a barrier in attracting foreign investment and creates a host of other problem.

5. This is despite the country being endowed with an effective legal framework backed by efficient law enforcement agencies to fight corruption. There is a comprehensive legislation i.e. Prevention of Corruption Act, 1988 to fight corruption in public services. There are exclusively constituted statutory bodies with autonomous authority like CVC and CBI and parallel State level agencies. But these agencies can initiate action only if complaints are sent to them. The pubic bearing a complacent attitude does not come forward and complain and choose to get along with this malady. To a large extent those demanding illegal gratification escape being caught in the net of the enforcement agencies.

6. Given the will, the authorities of nationalized banks can effectively deal with corruption with the powers conferred by the Discipline & Appeal Regulations. It is not difficult to identify corrupt public servants. The profile of every individual in an organization gets known to all therein within a period of two to three years. It is a small minority, powerfully entrenched that indulge in corrupt practices.(say about 5% of the total who exercise power)

7. The business of nationalized banks is growing stupendously year and after. The deposits of banking system, which was at a meager Rs.5300 crores in 1970 has crossed Rs.500,000 Crores in 1995 and Rs.10,00,000 Crores in 2000. The benefit of this business growth does not accrue to the system, as it is dissipated by growing NPAs piling up and depleting profitability. a direct effect of the prevailing corruption in the executive cadres of nationalised banks and with the corporate world of industry and business. The system has now accumulated as information goes, NPAs to an extent of Rs.1 Lakh Crores.

8. In every securities scam in the country PSBs are credited (in fact discredited) to be entangled with their unsavory role therein

The potent weapon of DA Regulations has in-built powers that can strike and hit its target within weeks and destroy the corrupt elements that act as a cancerous weed on our public service. But alas! this weapon is hardly being used for the laudable objective for which it is intended. Banks do have extensive audit machinery and inspection systems. These too do not act towards outright exposure of the corrupt and function its deterrent role. Why? Individual corruption has entrenched and has grown in dimension into corporate corruption. And like computer virus entering the boot sector and replicating its spread to every data folder and files, corporate corruption pollutes audit/inspection systems and preserves and promotes its own growth unchecked. PSBs have appointed disciplinary authorities in dozens to watchdog each and every segment in the hierarchy. Full time inquiry and presenting officers are employed in every region and zone of the banks, whose only assignment is to conduct departmental inquiries. Thousands of charge sheets are issued every year to officers in the middle management. But if honesty and frankness is to assert, it will lead to a sordid confession that all this happens to be a stage-managed affair, generally empty show, as rarely the power is employed to check corruption in the system.

My literature "Integrity in Public Life and Services" in particular the first seven chapters deals with Discipline, Misconduct and Corruption, and the need for establishing CLEAN PUBLIC INSTITUTIONS in our country. I have made an attempt to vividly portray through extensively quoting competent authorities the extent of the problem and the need for urgent action.

Unfortunately the weapon is only selectively used where there is an urgent need for its extensive application. As per statistics of CVC only 65 cases were referred by MYBANK in the year 1999, of which 25 relate to minor penalty cases leaving only 40 oral enquiry cases.

Discipline goes with purity, cleanliness and integrity. As a tool DA Regulation is well suited to curb corruption. It can act as a deterrent and a preventive cure. The weapon of DA Regulations is being increasingly used to fight against what is believed as inefficiency or under-performance or mismanagement, not to speak of settling personal scores, and putting down honest dissent. Lack of knowledge or failure in performance are not rectified by invoking punishment therapy. This is not a remedy that will eliminate the evil.

Regulation No.24 of MYBANK Officer Employees (Conduct) Regulations 1977 reads as under:

"A breach of any of the provisions of these Regulations shall be deemed to constitute a misconduct punishable under the MYBANK Officer Employees (Discipline and Appeal) Regulations 1977".

This definition on the face of it appears innocuous. Misconduct is being defined by enumeration in lists and narration in a series, instead being defined meaningfully to bring out its connotation, its genus, specie and differentia. But in fact most charge sheets in the Bank are not issued based on violations of different rules in the Conduct Regulation. But this is done using a single rule with sweeping connotation for which any and every interpretation can be given. This over-used Regulation is listed as Regulation No.3.1 of DA Regulations.

All charge sheets (almost 100%) in the Bank are issued alleging non-compliance of this conduct regulation. It is an omnibus provision, too wide that it can cover anything and everything under the sun. With this regulation the top management feels safe and secure to shift burden for all failures downwards. This regulation reads as under:

"Every officer employee shall, at all times take all possible steps to ensure and protect the interest of the Bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which is unbecoming of a bank officer."

Whenever an adverse development surfaces or a serious irregularity takes place in a credit account, a scapegoat and searched name(s) of "official responsible" is found out and charge sheet served. This discharges the senior executives from further responsibility for the mishap and Regulation No,.3(1) quoted above is the readily available weapon for this purpose.

This leads to two pertinent questions as under:

1. The same provision also finds a place in CCS(Conduct) Rules, i.e. Rule 3(1) which reads as under:

   1. Every Government Servant shall at all times-

   2. maintain absolute integrity

   3. maintain devotion to duty

   4. do nothing which is unbecoming of a Government Servant

   How does the central Government employees are charge sheeted for omissions committed by them in the discharge of their duties?

2. Whether the disciplinary Authority is not competent to enforce DA regulations for serious irregularities committed by officer in their performance or discharge of duties?

By way of clarifications it may be pointed out though a similar provision is contained in CCS (CCA) Rules, 1964. Administrative instructions have been issued by the Government of India, against its misuse. What is unbecoming attitude is considered and distinguished and punishment is given for specific cases and not under this Rule. It is pointed out that Rule 3(i) expressed above is too wide. It can be used to cover all types of cases, many of which can be of a trivial nature. Further In an Office Memorandum, dated 8th February 1977, the Department of Personnel and Administrative Reforms, Government of India, clarified as under:

"Rule 3(i) of the Central Civil Services (Conduct) Rules, 1964 provides that a Government servant shall at all times maintain absolute integrity and devotion to duty and do nothing unbecoming of a Government servant. This rule serves the specific purposes of covering acts of misconduct not covered by other specific provisions of the Rules. It is therefore necessary that the disciplinary authorities should first satisfy themselves that the alleged acts of misconduct do not attract the provisions of any specific rule before taking recourse to Rule 3(i) ibid. Where action is taken under Rule 3(i) particularly on grounds of unbecoming conduct special care should be taken to eliminate cases of trivial nature. Supervisory officers should look into this matter during periodic inspections and ensure that disciplinary proceedings under Rule 3(i) are not initiated on grounds, which are unjustified."

There is not only a guideline, but there is also a provision for verification of its due adherence. Proper norms are also recognized for understanding what is 'unbecoming conduct'. The sparing use of this position is done only in respect of unbecoming acts of the categories below:

Any conduct which is not appropriate or befitting the position of a Govt. servant may be considered as unbecoming conduct. A government servant is expected to maintain a reasonable and decent standard of conduct in his private life and not bring discredit to his service by his misdemeanors. For instance, where a Govt. servant neglects his wife and family he acts in a manner unbecoming of a Govt. servant and departmental action can be taken against him. It is an accepted principle that a public servant holding a responsible position in life has to maintain certain standards in his private life also.

The question will naturally be asked why DA Regulation should not be invoked to curb tendencies like negligence of duty, carelessness, irregular performance etc.

The need for total error-free (Zero level error) cannot be under stated. Several services recognizes this and ensure total efficiency like-

• Railways operating train services

• Aircraft operations

• Hospitals performing surgical operations.

Routine operational omission involving no intentional or willful action cannot be equated as misconduct. It is difficult to believe that lack of efficiency, failure to attain the highest standards of administrative ability would themselves constitute misconduct. If it is so, every officer rated average would be guilty of misconduct.

The term 'misconduct' means an act done willfully with a wrong intention and as applied to professional people, it includes unprofessional acts, even though such acts are not inherently wrongful. It also means a dereliction of or deviation from duty.
[Nahood Ali Khan, Inre, AIR 1958 AP116]

Operational efficiency is not ensured through "punishment therapy". Stray cases of procedural errors in performance cannot be defined as misconduct at all. Further discussion on this subject is beyond the scope of this chapter, but this is dealt with in my literature "Integrity in Public Life & Services" Chapter -2, in particular references relating to "whether negligence in performance constitutes misconduct

Negligence is an abstract term, which can exhibit a wide spectrum. It may be an action done hastily assuming urgency, skipping one or two steps of procedure in a chain. It may be an omission due to lack of knowledge or misunderstanding of the procedure. It may be due to a wrong judgement or an imperfect decision. It may be due to lack of organizing events properly. One common feature for all these omissions is that these occasion without any intention or willful action on the part of the employee, who does not possess job-skill and job-knowledge matching the needs of the tasks entrusted to him.

However the following are recognised as misconduct.

• Gross negligence or criminal negligence in performance, which is deemed as an offence.

• Habitual acts of negligence though not serious.

It is easier to manage a small branch, which comes under SOHO system (Small Office Home Office). Even here substantial literature has been developed to perfect management. To manage a corporate unit (beyond the size of management control under sole proprietorship, or limited partnership system of organization), needs special training. Such a branch may have dealings with several thousands of customers and putting through transactions numbering over a thousand per day. There may 10 to 15 officers and total staff of about a hundred. A person is promoted and posted with little training in organizational management to manage the vast and complex unit.

When he is further promoted as a Regional Manager, the responsibilities are again get totally varied. He has to understand the intricacies of remote management of geographically disbursed units. No literature on organizational management is developed in banks on these pertinent subjects, which influence its working. Powers are extensively delegated. You can get feed back and review the position. You can demand what you want, but how you will know to give what they need? But from a remote point how to visualise the problems confronting each branch and ensure efficiency and efficacy. All these are possible, but they need continuous study, perfect understanding, plus research, development and training.

To get knowledge is one thing, but to manage the total knowledge possessed by an organization and disbursed with several persons at several places, known as knowledge management, is more valuable and when efficiently handled it begets real benefits.

For more information on Time use management, memory management and knowledge management please refer to the topic in my projects titled "Learning Circle".

When certain guidelines are issued defining the policy regarding initiation of vigilance and non-vigilance disciplinary cases, with the aim of motivating managers and other officers to accept bonafide business risks and work towards business development, these must be honoured in practice. In this connection, please refer to web-page Policy Guidelines of the Bank defining what is "Vigilance Angle". Such commitments announced and forbearance accepted should be honoured, and where bonafide action of line managers results in business losses, punitive action should not be initiated. It is generally the feeling amongst the rank and file that these guidelines are intended to serve needs and purposes of only the senior and top executives. Nothing should be done to foster such a view-point.

A leader is morally responsible for the faults and omissions of his followers. MYBANK cannot rate its 95% branches as "average" performing, but still claim 'excellence' for its overall performance. The concept is embodied in Conduct Regulation 3 (4) which read as under:

General 3 (4) -Every officer employee shall take all possible steps to ensure the integrity and devotion to duty of all persons for the time being under his control and authority.

This regulation is applied, as against branch manager in respect of all members of staff of his branch. But is not recognized for senior officers in respect of their remotely placed subordinates, i.e. Regional Managers in respect of Branch Managers under their control and Zonal Managers in respect of Chief Managers and Regional Managers under their jurisdiction. On a reverse logic, as it is not applied, RMs/ZMs are not loaded with effective responsibility for efficient and error free management of branches and evolving systems and procedures for the same. They take credit for quantitative business growth, but do not accept responsibility about the falling standards of quality. The SCBs have shown growth of Rs.10 Lacs Crores of deposits. The credit goes to the top management. The SCBs have accumulated Rs.l Lakh Crores of NPAs, but who is to wear this cap?

There are branches steeped in total chaos, where nobody prefers to get posted. But mismanagement is not exclusively misconduct. It needs a diagnostic approach and steps to cure the malaise not by a factual investigation for listing and bundling person-wise irregularities and omissions. These are all due to mismatch between job skills that the tasks entrusted demands and the actual skills possessed by the officer employee. A clerk is promoted as a special assistant, or a clerk/special assistant is promoted as an officer. Before promotion they were efficient. After promotion they are asked to perform new jobs, that demand different skills, in addition to different job knowledge. At this stage the job changes are minimal, but in the following cases the changes are vast-

1. An officer is promoted as a manager of a small branch (10 to 15 staff members)

2. A manager small office (10-15 staff members) is promoted as a Senior manager for a medium office (30 to 50 staff)

3. A Sr.Manager is promoted as a Chief Manager (100 to 200 staff members)

4. A Sr.Manager is promoted as a Regional Manager or a Chief Manager is posted as a Regional Manager

5. A Regional Manager is promoted as a Zonal Manager

6. A zonal Manager is promoted as a General Manager.

In each of these transformations or changes the concerned officer is called upon to literally deliver new products that he was not giving out earlier. What is needed is not only knowledge in banking and credit management, but one has to learn about leadership and personnel management, organization behaviour, industrial relations, subjects, which are covered in Business Management. Every manager should be taught management. Those who have to handle credit has to be well-versed in financial management. Those who handle audit/inspection functions in Auditing. Those who appraise projects have to possess fundamental knowledge of cost and management accountancy.

1. Employ D.A regulations to secure purity and integrity in administration.

2. Be careful in applying the Regulations to fight against inefficiency, mismanagement or failure to come to the required standards of efficiency etc.

3. In respect of corruption cases punishable under DA Regulations place the officer under suspension. Conduct a quick preliminary inquiry, file FIR with CBI/State Police under PC Act. Thereafter initiate a regular departmental inquiry and dismiss or remove the officer if the case warrants.

4. In respect of disciplinary cases involving a clear "vigilance angle" initiate disciplinary proceedings, take charge and pursue the case from the point of receipt of complaint. FIR should be registered before investigation (with very brief particulars). Ensure that investigation is completed expeditiously, and quickly decide follow up action on the report, if FIR is to be filed with CBI/Police. Otherwise serve charge sheet and complete the case within 6 weeks.

5. Same procedure to be followed for cases involving administrative in-subordination, and reckless action or habitual negligence, that renders the continuance of those employees further in service to be reconsidered. These cases to be treated as non-vigilance cases and separate complaint register may be maintained.

6. The inquiry schedule after receipt of an investigation report is to be fixed as under. 7 days for studying report and deciding follow up action/issue of charge sheet.

7. One week for preparation of charge sheet and 2 weeks for charged office to submit his reply (CO will be given only 7 days including verification of records and 1 week for communication to and fro.

8. A disciplinary case should be completed within 10 to 12 weeks of receipt of Investigation report. And within 6 months of receipt of complaint. Refer more details given in Part-5

9. Do not serve charge sheet without a proper investigation report accompanied with entire material evidence in support of the statement of imputations.

10. Avoid issuing charge sheets for petty/minor offences that will attract minor penalties. In these cases a competent administrative officer or disciplinary authority himself will summon the delinquent officer and convey displeasure. Keep the officer on observation for 6 months. Close the case thereafter. But if the officer repeats a second time or habitually commits cases of negligence or error performance, a charge sheet may be issued quoting all cases.

11. When a complaint is pending and investigation has been decided the delinquent officer should not be transferred to far of destinations. This makes inquiry process more complicated and more expensive.

12. Along with the investigation in progress take steps to protect all material records. Refer detailed guidelines in this respect in CVC manual.

13. Be impartial at all stages of the disciplinary cases. Follow pre-decided rules/conventions in deciding punishment.

14. Most important after awarding punishments of stoppage of increment or reduction, counsel the officer concerned and encourage him to turn a new leaf. This job should be specifically entrusted to the immediate controlling authority to look after his rehabilitation and be sympathetic in solving his personal problems including training requirements etc. The action taken in awarding punishment of reduction/stoppage is justified, if there is improvement and progress in the officer's performance subsequently. Otherwise punishment is counter-productive. Here comes the HRD concept within discipline management.

We have spent time and money to recruit each employee/officer. We have given them training at considerable expense. Employee is a resource and has to be maintained and not simply cast away. DA regulation is important, but do not sacrifice pragmatic HRD management in this context. Disciplinary Authority has a dual role and both are important.