Raghuram Rajan recently used his bully pulpit to increase the prominence of the draft Indian Financial Code (IFC). In order to help you, gentle reader, figure out the mistakes of his speech, we have released a batch of videos.
The key materials about the IFC are a gentle paper, the report, and the law. The Ministry of Finance and all financial agencies have decided to adopt the Handbook on adoption of governance enhancing and non-legislative elements of the draft Indian Financial Code, through which the gains of IFC are brought forward in time.
The IFC and the Handbook are subtle. For people without the relevant background in public administration, law and public economics, and an understanding of what works and does not work under Indian conditions, a lot of it appears impressionistic and faddish. A substantial increase in skills is required in order to build State capacity, in the form of public agencies that work satisfactorily. To help carry the process forward, we recently hosted a workshop for all financial agencies, and MOF, at NIPFP on this Handbook. In my knowledge, this was the second time in history that senior staff from all financial agencies got together in a two-day workshop: breaking down the silos of Indian finance is the essence of the IFC. All the videos are now on youtube :
- Inaugural address by the Hon'ble Finance Minister and Dr. Rathin Roy, Director, NIPFP. Link.
- Regulators as Mini States: A discussion of the rule of law in regulatory governance, and the importance of separation of powers. Link.
- Framing Regulations (Handbook Chapter 4): An overview of the process by which the Boards of regulatory bodies are to frame regulations. Link.
- Cost-Benefit Analysis (Handbook Chapter 4): An overview of the cost-benefit analysis that is to be carried out by financial regulators as part of the regulation-making process. Link.
- Consumer Protection (Handbook Chapter 2 and Chapter 3): An explanation of how consumer protection is to be incorporated into financial regulation. This includes additional protections for retail consumers. Link.
- Role of Board and Transparency (Handbook Chapter 6 and Chapter 7): A discussion of the critical role of the Board as the apex body within a financial regulator, and the need for transparency in regulation. Link.
- Approvals, Notices and Investigation (Handbook Chapter 9, Chapter 5 and Chapter 10): A discussion of the some of the executive functions of a financial regulator: granting approvals, issuing notices and conducting investigations. Link.
- Adjudication and Penalties (Handbook Chapter 11 and Chapter 12): Adjudication and penalties in the context of Indian Financial Regulation, and a practitioner's perspective on the intersection of law, business and regulation. Link.
The full playlist might also be useful.