The Central government is set to table the Jan Vishwas 2.0 Bill in the Lok Sabha on Monday, 18 August 2025, marking another major step toward simplifying compliance and decriminalising minor offences across sectors. Prime Minister Narendra Modi, during his 79th Independence Day speech, emphasized that the bill is designed to replace unnecessary penal provisions with an “improvement notice” system, enabling citizens and businesses to correct mistakes without facing jail for trivial matters.
Earlier this week, the Union Cabinet cleared the proposal, signaling continuity from the Jan Vishwas Act, 2023, but with deeper reforms targeting more than 100 provisions. Here are the five most important things to look out for in Jan Vishwas 2.0.
1. Introduction of ‘Improvement Notice’
One of the most significant provisions is the replacement of penalties with improvement notices for first-time offenders. Instead of fines or imprisonment, violators will receive an official notice along with a timeline to rectify the non-compliance. This move is expected to encourage compliance over punishment, aligning with the government’s trust-based governance model.
2. Shift in Approach: From Punish to Correct
While Jan Vishwas 1.0 (2023) followed a “penalise on first detection” model, the new bill introduces a “inform–correct–penalise” system. The reform shifts the focus from punishment to correction, reducing fear of prosecution and enhancing the ease of doing business. Experts suggest this approach could build a healthier relationship between regulators and businesses, without compromising deterrence for repeated violations.
3. No Penalty on First Offence
The bill explicitly provides that first-time offences will attract no monetary penalty. Businesses or individuals who violate a provision for the first time will be given an opportunity to rectify the mistake within a pre-defined period. This change will particularly help startups and small businesses that often face compliance hurdles due to complex regulations.
4. Harsher Penalties for Repeat Offenders
While the government is extending leniency for first-time violations, repeat offenders will face stricter consequences. From the second offence onwards, penalties will apply, and fines will increase progressively with subsequent offences. However, the fines will remain within a maximum cap based on the nature of the offence. This balance ensures that habitual violators are deterred, while genuine errors are treated more compassionately.
5. Building on Jan Vishwas 1.0 Success
The Jan Vishwas Act, 2023, set the foundation for decriminalisation by removing or rationalising over 180 provisions across multiple laws. For example:
- Section 41 of the Food Corporations Act, 1964 (which imposed six months’ imprisonment for misuse of FCI’s name in advertisements) was scrapped.
- Imprisonment for tree felling in protected forests was removed, though a ₹500 fine was retained as a deterrent.
With Jan Vishwas 2.0, the government now plans to decriminalise more than 100 additional provisions, taking the reform agenda further.
Why Jan Vishwas 2.0 Matters
- Ease of Doing Business: Reduces harassment of entrepreneurs and SMEs.
- Trust-based Governance: Encourages compliance instead of punishment.
- Legal Modernisation: Removes archaic provisions from outdated laws.
- Balanced Regulation: Ensures leniency for genuine errors while keeping strict checks on repeat violations.
As Finance Minister Nirmala Sitharaman announced in the 2025 Budget, this reform represents a paradigm shift in India’s regulatory framework. If passed, Jan Vishwas 2.0 will not only simplify business operations but also strengthen citizens’ trust in the legal system.