Answer: 

Introduction:

Regulatory institutions play a crucial role in the effective functioning of a nation’s economy and social structure by maintaining checks and balances. To achieve their objectives, it is essential for these institutions to remain independent and autonomous. This autonomy allows them to make decisions based on technical expertise without undue political or commercial influence.

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However, in recent years, there have been instances that indicate a threat to the autonomy of these regulatory institutions.

• The Reserve Bank of India (RBI):
  • RBI is India’s central bank and is responsible for maintaining monetary stability. However, there have been episodes of public disagreements between the government and the RBI.
  • For instance, the abrupt demonetization in 2016 raised concerns about RBI’s autonomy.
  • Again, the dispute over the RBI’s capital reserves in 2018 led to the resignation of its then Governor, Urjit Patel, underlining the concerns about the central bank’s independence.
• The Central Bureau of Investigation (CBI):
  • Known as the premier investigating agency of India, the CBI’s independence has been a subject of debate.
  • The infamous tussle between then Director Alok Verma and Special Director Rakesh Asthana in 2018, followed by questionable government interference, raised serious questions about the autonomy of the institution.
• The Judiciary:
  • The Judiciary is expected to be a pillar of democracy, delivering justice independently.
  • However, the debate around the appointment of judges, particularly after the NJAC (National Judicial Appointments Commission) Act of 2014, raised concerns about the independence of the judiciary.
• The Election Commission of India (ECI):
  • The ECI is entrusted with the task of conducting free and fair elections. But there have been allegations of bias and concerns about its autonomy, particularly during the 2019 General Elections, raising questions about its capability to function independently.

These examples show that the autonomy and independence of regulatory institutions have been under strain, which can potentially undermine their effectiveness and credibility. It is, therefore, crucial to safeguard their autonomy to ensure they can perform their functions effectively and maintain public trust. This can be achieved through measures like statutory backing for independence, clear appointment and removal processes, transparency in operations, and accountability mechanisms.

Conclusion:

The autonomy of regulatory institutions is not an end in itself but a means to an end – the end being the effective and efficient achievement of desired objectives. This autonomy needs to be preserved and protected for these institutions to fulfill their mandates and contribute to the nation’s development effectively.

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