Cornwallis observed that the company’s servants were underpaid and they engaged in illegal but lucrative private trade in the names of relatives and friends.
Hence Cornwallis tried to check corruption through
raising the civil servants’ salary,
strict enforcement of rules against private trade,
debarring civil servants from taking presents, bribes etc.,
enforcing promotions through seniority.
Cornwallis also established the policy of making appointments primarily on merit, laying the groundwork for the Indian Civil Service.
The collectors were stripped of their judicial powers, and their job became merely revenue collection.
Top posts were reserved for the Europeans whereas Indians were offered lower grade posts.
