UPSC Prelims 2019 Question:

In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

1. Ad Hoc Committees set up by the Parliament 
2. Parliamentary Department Related Standing Committee
3. Finance Commission
4. Financial Sector Legislative Reforms Commission
5. NITI Aayog
   
   

Select the correct answer using the code given below.

Explanation:

• • The independent regulatory agency is a government authority that exercises regulatory or supervisory authority over a variety of human activities. These are customarily set up to strengthen safety and standards, and to protect consumers in markets. These agencies are generally a part of the executive branch of the government and have statutory authority to perform their functions with oversight from the legislative branch. E.g. RBI, IRDAI, TRAI, etc.
    
    
  • A Parliamentary Committee is a panel of MPs that are appointed or elected by the House or nominated by the Speaker and works under the direction of the Speaker. It presents its report to the House or to the Speaker and the Secretariat which is provided by the Lok Sabha Secretariat. Parliamentary Committees are of two kinds, Standing Committees, and Ad hoc Committees.
    
    
  • Ad hoc Committees are appointed for a specific purpose. They cease to exist after they have completed the task assigned to them, and have submitted a report to the House. These committees can scrutinize and review the independent regulators and matters that come under their authority. E.g.- Joint Parliamentary Committee to examine matters relating to allocation and pricing of telecom licenses and spectrum (matter under TRAI), etc. So, option 1 is correct.
    
    
  • Department Related Standing Committees examine budgetary proposals and crucial government policies. These committees increase Parliamentary scrutiny and give members more time and a wider role in examining important legislation. These committees also scrutinize the functioning of independent regulatory bodies. So, option 2 is correct.
    
    

• The Finance Commission does not review or scrutinize independent regulatory agencies. So, option 3 is not correct.
  
  

• The Financial Sector Legislative Reforms Commission (FSLRC), constituted by the Ministry of Finance in March 2011, was asked to comprehensively review and redraw the legislation governing India’s financial system. So, option 4 is not correct.
  
  

• NITI Aayog has its own specific functions and doesn't review independent regulators. So, option 5 is not correct.
  
  

Relevance: Economic Affairs Secretary clarified to the media that they are looking into the report of Financial Sector Legislative Reforms Commission (FSLRC) and cannot take decisions on it in haste.

Therefore, option (1) is the correct answer.

Subject: Polity | Governance