Jan Vishwas Bill 2.0

The Jan Vishwas Bill 2.0 is one of the most important regulatory reforms introduced in the Union Budget 2025–26.

It expands upon the original Jan Vishwas Act, 2023, aiming to decriminalize over 100 additional provisions across Indian laws.

For SSC aspirants, the Jan Vishwas Bill 2.0 is a crucial current affairs topic, especially under General Awareness, Economy, and Governance.

This reform signals a major shift from punitive legal enforcement to a trust-based governance model, improving the ease of compliance for MSMEs and streamlining India’s business laws.

What is Jan Vishwas Bill 2.0?

Jan Vishwas Bill 2.0 is a progressive legislative initiative that continues the journey of decriminalization and legal simplification started by its 2023 predecessor.

While the earlier act amended 42 Central Acts, the Jan Vishwas Bill 2.0 takes it further by focusing on state laws and additional sectors. It aims to create a business-friendly policy environment by promoting compliance over punishment.

This bill introduces a simplified regulatory framework in India by:

• Replacing imprisonment clauses with financial penalties

• Promoting legal reforms for ease of doing business

• Reducing harassment for minor procedural lapses

• Encouraging a trust-based governance model

Why Was Jan Vishwas Bill 2.0 Necessary?

1. Outdated, Punitive Laws

• Many colonial-era laws still imposed jail terms for minor violations, discouraging entrepreneurship and innovation.

• Jan Vishwas Bill 2.0 seeks to modernize these laws.

2. Burden on MSMEs

• With over 69,000 compliances in India, small businesses struggle to meet legal requirements.

• Jan Vishwas Bill 2.0 aims to ease this pressure by ensuring ease of compliance for MSMEs.

3. Backlogged Judiciary

• Indian courts face over 5 crore pending cases, many related to minor offences.

• Jan Vishwas Bill 2.0 reduces this burden by converting these into compoundable offences or monetary penalties.

4. Need for Trust-Based Regulation

• India’s legal framework has often worked on a presumption of guilt.

• Jan Vishwas Bill 2.0 introduces a trust-based governance model, treating citizens and businesses as compliant by default.

Key Features of Jan Vishwas Bill 2.0

Decriminalization of Business Laws

• By removing criminal penalties from procedural violations, the Jan Vishwas Bill 2.0 boosts confidence among entrepreneurs and promotes risk-taking.

Ease of Compliance for MSMEs

• Micro, Small, and Medium Enterprises benefit from reduced compliance costs and time.

• Jan Vishwas Bill 2.0 helps formalize businesses and encourages expansion.

Reduction of Jail Terms in Indian Laws

• Many minor offences across industries will no longer carry imprisonment clauses.

• Instead, fines and warnings will be used to enforce compliance.

Risk-Based Enforcement

• Jan Vishwas Bill 2.0 supports targeted inspections and enforcement based on actual risks, a hallmark of the trust-based governance model.

Digital Compliance

• Encourages adoption of platforms like DigiLocker and MCA21 for paperless regulation, ensuring a simplified regulatory framework in India.

Implementation Strategy of Jan Vishwas Bill 2.0

Building on the Jan Vishwas Act Implementation

• The Jan Vishwas Act, 2023, decriminalized 183 provisions across 42 Acts.

• Building on this, Jan Vishwas Bill 2.0 focuses on state and local laws, where most punitive clauses still exist.

State-Level Legal Reforms in India

• Jan Vishwas Bill 2.0 encourages states like Kerala, Haryana, and Madhya Pradesh to modernize laws, reduce criminal penalties, and implement reforms aligning with Regulatory Reform in India 2025.

Deregulation Commission

• A proposed Deregulation Commission will help harmonize state and central laws under the Jan Vishwas Bill 2.0, ensuring uniform policy enforcement across India.

Benefits of Jan Vishwas Bill 2.0

Challenges in Implementation

• Legacy Bureaucratic Systems: The Colonial mindset of control still exists in parts of the system.

• Non-uniform State Laws: While the Centre reforms laws, many state-level laws still impose strict penalties.

• No Standard Trust Metrics: Measuring the success of a trust-based model is difficult.

• Technology Gaps: Digital systems like e-Bill and PARIVESH need better integration.

Way Forward

To ensure the success of Jan Vishwas Bill 2.0, the government should:

• Create a unified "One Nation, One Business" identity system

• Expand AI-based auditing to enforce risk-based inspections

• Empower municipalities with modern legal tools

• Build trust and transparency using blockchain and dashboards

• Track success using “compliance ease scores” and stakeholder feedback

Final Thoughts

The Jan Vishwas Bill 2.0 marks a major step in India’s journey toward a modern, inclusive, and efficient legal system.

It reflects the nation's commitment to the decriminalization of business laws, ease of compliance for MSMEs, and a trust-based governance model.

For SSC aspirants, this reform is not just a current affairs topic — it is a landmark in India’s evolving policy environment under Regulatory Reform in India 2025.

Understanding the Jan Vishwas Bill 2.0 will help students answer questions in General Awareness, Economy, Governance, and more.