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Jan Vishwas 2.0 is all about trust-based compliance

09 Apr 2026
1 min

Reform through the Jan Vishwas (Amendment of Provisions) Bill, 2026

The passage of this bill by Parliament represents a strategic policy decision by the Government of India, aiming to balance enforcement with facilitation and embed trust within the regulatory framework.

Key Objectives of the Reform

  • Proportionate Enforcement: Shifting away from heavy reliance on criminal sanctions towards more proportionate measures. 
  • Predictability: Creating a regulatory environment that is predictable, aiding businesses in understanding and following compliance requirements. 
  • Facilitative Approach: Encouraging a compliance culture that is supportive rather than punitive. 

Focus on Decriminalisation

Decriminalisation of minor business-related offences forms a core component of India's ongoing reform agenda.

Objectives of Decriminalisation

  • Rationalize compliance requirements.
  • Enhance the ease of doing business.
  • Promote a regulatory culture based on voluntary compliance.

Issues with Previous Compliance Models

  • Compliance Anxiety: Excessive criminalisation of technical and procedural lapses created anxiety among businesses. 
  • Discouragement of Entrepreneurship: Fear-driven adherence hindered entrepreneurial initiatives. 
  • Resource Diversion: Administrative and judicial resources were diverted away from addressing serious violations. 

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Facilitative Approach

A key objective of the reform, promoting a regulatory environment that supports and guides businesses towards compliance, rather than adopting a purely punitive stance. This aims to build trust and encourage a culture of voluntary adherence.

Proportionate Enforcement

A principle advocated by the reform, moving away from harsh criminal sanctions for minor infractions. It emphasizes applying penalties that are commensurate with the severity of the offense, thereby fostering a more balanced regulatory approach.

Decriminalisation

The act of removing criminal penalties for certain offenses. In a business context, it refers to shifting certain commercial violations from criminal to civil offenses, thereby creating a less punitive and more encouraging environment for entrepreneurs.

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