Ans.Arthakranti proposal attempts to address the motive behind the corruption and tool for the same(high denomination notes). Implementing the ArthaKranti Proposal will deal lethal blows to the parallel economy by bringing it back into the fold of the Banking System and removing its favored currency of high denomination. Strong governance and the traceability of transactions coupled with these factors will ensure very unfavorable conditions for corruption at the macro level.
• Corruption at the micro level is likely to take some time to disappear since it is also linked with moral standards of society. However, a number of steps can be recommended to introduce an element of deterrence and ensure accountability:
• Every bank account could be linked to a unique identification number like PAN
• It can be binding by Law on all Banks in the system to carry out Transaction Audits of all accounts in each branch and submit them periodically to the Government, duly certified by Accounting Professionals.
• Every individual could be required to disclose the source of receipts above a pre-determined limit once a year to the Government, duly certified by Accounting Professionals as required by law.
Through such means, all dishonest and anti-social elements can be effectively tracked and charged under strict laws of the land.