In a care free society and with good chunk of corrupt people around, A carrot and stick policy of our government will not give good results.
To make people to adhere to laws of the land , the law should have stringent punishment, There cannot be any rights to law breakers and corrupt, You will be aware , slowly the menace of corruption has penetrated so deeply that even white collared bank officials are willing to violate for the greed of money, there are no remorse to their misdeeds and they know that they can shield themselves from public views , more so from immediate family friends etc, Let me give some examples
1. If arrested, the police take them away with their face covered.
2, The press will misspell the name , so that the identifications are not complete
3, For immediate financials needs , the ill gotten money is there to take care .
The first thing the Government should do are:
A: Arrest the person
B.Disclose the name , his permanent address, current address, his family members to the press
C. Make the punishment severe, for instance any government officials or bank employee cheating with public fund, , let their be a 7 years imprisonment.
D. Confiscate the full pension fund and gratuity
E. Classify the fraud , based on amount involved , say, if the fraud to the tune of <1crore,[CATEGORY I] >1 to <10 crores [CATEGORY II] , >10 crore[CATEGORY III],... Confiscate 25% of the total asset of fraudster and his immediate kin for category I , 50% for category II, and 75% for Category III] The confiscation should be done adhoc as soon as the departmental inquiry is over, and should not wait for the legal case, which can take its sweet time.
F, Suspend the fraudster immediately and terminate after departmental inquiry is over. Deposit confiscated amount in the bank and let it earn interest, if the case goes against , the money can be returned with the interest.