Goals of Regulatory Policies
1. Financial Stability: Through the tracking of systemic risks, regulations prevent financial crisis — an instance where they would fail is a functioning and stable financial system.

2. Public Access & Accountability:The policy is strictly enforced with concrete reporting norms, audits being performed at regular intervals.

3. Consumer Welfare: Regulations safeguard the consumer rights by avoiding frauds and preventing inflated prices for goods.

4. Promote Honest: As Rule-Making frameworks discourages practices that are not right i.e., insider trading, money laundering.

Mechanisms required to offer Accountability and Governance-

1. Regulatory Bodies:
Institutions such as the Reserve Bank of India (RBI), Securities and Exchange Board OfIndia and Insurance Regulatory And Development Authority Of India enforce financial compliance.
RBI Regulation — Proper capital preservation of The Banks

2. Legal compliance
Know Your Customer (KYC) & Anti-Money Lender (AML)
Regular financial statements and audits let you appear transparent.

3. Technological Implementation:
1. Check transactions in real time; Assess the risk — Use of Technology
– For instance, banks have introduced automated fraud detection systems.

4. Mechanism for Redressal of Grievances:
Consumer redressal availed through the Ombudsman and a framework to resolve disputes.

Consequence of the Regulatory Policies

1. Impact at Governance: Clear policies make financial institutions accountable.
2. Confidence in Markets: Strong regulations help sources domestic and foreign investment, since they make it a more secure financial place.
3. Less Corruption: Legislated easing of the process of debt recovery (s.t. i.e. IBC such as Insolvency and Bankruptcy )

Challenges:
– Overlapping jurisdictions lead to regulatory arbitrage.
– Delayed enforcement and monitoring of compliance.

– Recommendations:
– Strengthening inter-agency coordination.
– Improving capacity-building programs for regulatory bodies.