Regulatory Impact Assessment

August 21st, 2014Deboshree Banerji, CUTS International

Facilitating the Adoption of Regulatory Impact Assessment (RIA) Framework in India

1Outline22About the ProjectGenesis of CUTS work on regulatory reform:India Competition and Regulation Report (2007 2013)Working group on Business Regulatory Framework: Knowledge PartnerDraft Regulatory Reform Bill

Objective: Enable the central government and certain regulatory authorities to be in a position to adopt RIA framework for improving economic governance in India

Activity: Undertaking RIA in Insurance and Banking sectors (Primary Laws)

Time Frame: July 2014 March 2016

3Create evidence: Design and implement RIA tool

Generate demand: Highlight benefits, awareness and advocacy programs

Ensure supply: Focused training and capacity building

Sectors: Banking and Insurance related primary laws

About the Project (Contd)4Need for the projectIndian regulatory governance processes have become outdatedStakeholders are not regularly consulted while policy making, and there is no formal policy review mechanism. Resulted in a loss of investor confidence and barriers to economic growth. RIA is an appropriate remedy for this situationparticipatory approach to assess impact of regulationsdetermine costs and benefitsselect the most appropriate policy alternativeEnsures greater clarity and predictability in regulatory process

5Need to Assess Impact of LegislationsKey for Efficient Regulation Striking the Right Balance

6Why Financial Sector?Inadequate access to financial services

Lack of competitive neutrality

Lack of objective clarity

Accountability issues

7Key ActivitiesConstitution of National Reference GroupLiterature review and desk researchPreliminary stakeholder surveysTwo Focused group discussions for government/regulators and industryCombined stakeholder forumTwo national level advocacy seminarsFour training/capacity building sessions

8Expected OutputsTwo Research Reports Customised RIA ToolkitTwo policy briefs on sector specific recommendationsBriefing paper on process and benefits of RIAConsolidated project reportNewspaper Articles

9Expected OutcomesAdvocate adoption of RIA framework byCentral government Regulatory authorities

Cadre of individuals equipped to undertake RIA

10Thank You11