INSUBCONTINENT EXCLUSIVE:
Budget is likely is to focus on the government making strides through several initiatives.New Delhi: Finance Minister Nirmala Sitharaman is
all set to present her third Union Budget on February 1, 2022
This year, the Budget is likely is to focus on the government making strides through several initiatives, including the recently set up
Fintech Department and the introduction of the Payment Investment Development Fund (PIDF) to incentivize fintech in India.Also, NBFCs
(Non-banking financial companies) and financial technology (fintech) are expecting to see more opportunities from the Centre to expand the
market scope and scale and impact long-term changes in the financial industry.Leading fintech players and startups have shared their
thoughts on what are they expecting from the Budget this year.Here are the expectations:Sharan Nair, Chief Business Officer, CoinSwitch
Kuber: "Various macroeconomic developments in India and the world over the last year have led to a rise in crypto adoption in India
Today, leading crypto exchanges follow strict self-regulatory practices to ensure customer protection
We hope the upcoming Union Budget will bring in regulatory clarity and help standardize best practices, address misconceptions around this
We believe a regularised environment will encourage more Indians to start their crypto investing journey, promoting financial inclusion in
line with the government's vision."Ketan Patel, CEO, Mswipe: "The SME (small and medium enterprises) sector is the backbone of the Indian
In the upcoming Budget, we expect the government to make announcements that will empower small businesses thereby reviving the economy from
the impact of the pandemic
In November 2021, the government announced the Special Credit Linked Capital Subsidy Scheme for the MSMEs (Micro Small and Medium
Enterprises) in the services sector
This should be extended to SMEs whose turnover is less than Rs 5 crore as it will help them procure service equipment through institutional
credit for the advancement of their technology
The government should also look at tax breaks for companies providing technology support to MSMEs
At a time when we are expecting the third wave of Covid to hit economic activity and businesses are facing difficult times, the government
must take measures to meet the SME lending requirements
Subsidizing the cost of funds to NBFCs that focus on lending to small merchants for loans below Rs 20 lakh is a way to ensure easy access to
Besides, we expect the Finance Minister to increase credit guarantee for lending while also providing relief in terms of tax sops or
subsidizing manpower costs for digital players to promote digital payments in tier 3 to 6 towns
Lastly, this Budget should further look at propelling the country towards a digital future."Gurjodhpal Singh, CEO Tide(IN): "This is the
third year of the pandemic and MSMEs have been struggling all through since early 2020, several small businesses had to downsize or shut
shop as they were challenged by severe liquidity crunch and dipping demand
Being central to the economy, MSMEs need assistance to be back on track and the government can provide that much-needed support through a
Unavailability of working capital, cost of compliance and taxation are potential challenges that need to be addressed
We are looking forward to a budget that will further push for digitization
Significant spending and allowances for infrastructure, especially digital banking infrastructure will also be an important ingredient for
the success of both, the budget and MSMEs
These steps can boost financial inclusion to a great extent
Lastly, steps with a focus on new businesses and enabling entrepreneurship are key to provide the much-needed impetus for the sector."Anand
Kumar Bajaj, Founder, MD - CEO, PayNearby: "The digital payments space has proved its mettle as a stable growth avenue during the pandemic
A positive impact was seen on digital payments due to benign taxation for self-service digital customers
To ensure the same benefits reach the less-savvy citizens, our government could waive GST and TDS for financial inclusion services at
Business Correspondent (BC) outlets across India
A GST and TDS waiver will help reduce the cost of offering seamless financial services and help high-end tech reach the technology-oblivious
We stand with the government's intent of taking digitization to the last mile and passing the GST waiver benefit to ?end-users as this
will push for greater financial inclusion and a digital economy in the country
Moreover, low-income citizens are mostly catered to by low-earning retailers who barely cross the value of taxable income, and hence, do not
file IT returns to claim a refund of TDS
Thus, TDS is only a cost to them and not a refundable deduction because they do not know how to take a refund by filing returns
We sincerely hope that TDS for income below Rs 50,000 a year can be waived off."Bhavin Patel, Co-founder - CEO, LenDenClub: "The economy is
projected to gradually return to its previous trajectory, with fiscal priorities in the upcoming budget invigorating it
A regulatory body to oversee payment recovery is the need of the hour
An enhanced procedural aid to the legal recovery of repayments from digital borrowers to further protect the rights of those who lend money
Such a specialized government vehicle to oversee fintech could not only help startups run more effectively, following compliance
requirements, but it would eliminate possible fraudsters
Returns from investments in Peer-to-Peer (P2P) Lending could be exempted from tax under Section 80C of Income Tax law, or a different
provision could be carved out to reduce tax rates such as tax exemption for gains below Rs 20,000
This will encourage people across geographies to invest in P2P lending, making funds accessible on multiple platforms
P2P lending plays a significant role in empowering small businesses in India
Tax benefits in P2P lending will magnify the growth of businesses when capital from P2P platforms is diverted to the sector."Pratik Gauri,
Co-founder - CEO, 5ire: "Crypto technology and blockchain are long-term phenomena that are not going away
power of good for better governance and accountability
model of utilizing it ourselves
The Union budget should include more resources to make our cities into more efficient, better governed, smart cities
Lastly, the Union Budget 2022 can be a starting point for adopting the UN 2030 Sustainability goals not only in words but in spirit to
address a spectrum of work areas, chief among them environmental sustainability, or the intentional and careful use of natural capital such
as water, air, solar, mineral resources, timber, and land."Lalit Mehta, Co-founder - CEO, Decimal Technologies: "Fintech players have
already shown willingness to work with the government to curb the menace of the illegal digital lending apps
Budget 2022 should introduce regulations that will help in greater credit access to MSMEs and curbing illegal activities while building
trust in the digital lending process for the last mile
In line with the government's goal of creating a digital economy, introducing credit schemes will incentivise the sector and help in
providing timely credit to MSMEs that have struggled due to the lack of credit accessibility through traditional means of lending which has
directly affected their business opportunity."Ashraf Rizvi, Founder - CEO, Gilded: "Gold has always been an important part of savings/
investment/ wealth portfolios not only in India but also across the world
In India, however, investment in gold is as much a cultural phenomenon as it is a financial one
This cultural tradition has adapted to the times with the introduction of digital gold
This new, convenient, and safer way to access physical gold has seen increased investments from new-age first-time investors
Millennial and Gen Z age categories undoubtedly take to this storage-proof, quality-assured, easy-to-transact new-age asset
Multiple wealth-tech applications have come to the fore, highlighting the growing need for a progressive regulatory framework for this asset
Currently, capital gains on profits from the sale of gold can be as high as 20 per cent compared to profits on shares taxed at 10 per cent
An alignment among the tax regimes for investments would give investors greater flexibility in choosing the assets that best fit their needs
last two years with the pandemic playing a key role in the digital adoption of financial services across the country
With the government making strides through several initiatives including the recently set up Fintech Department and the introduction of
Payment Investment Development Fund (PIDF), the sector is expecting to see more opportunities and initiatives being taken forward by the
government that will help in the expansion of the market, influence customer behaviour, and impact long term changes in the financial
There have been many discussions going around in the crypto space; however, no concrete output so far
As an exchange, we have been working on this along with the finance ministry, creating favourable regulations
We have shared deeper insights and statistics that showcase the size of the industry, the scale, and the growth rate it offers
How critical it is to various vital pillars of the economy, including employment creation and how people have been interacting with
different crypto products that would ultimately help grow the Indian economy."Anurag Sinha, Co-Founder - CEO, FPL Technologies: "The Fintech
offering multiple services through few swipes on a mobile - significantly influencing digital adoption across the spectrum including
While the pandemic triggered a steep rise in demand for consumer credit, it also highlighted the lack of credit penetration in the country
However, given the rise of smartphone usage, shift to digital avenues and the increasing number of digitally-savvy consumers, licensed
digital banks can effectively enhance reach and bridge this gap
A digital bank license regime will therefore enable fintech platforms to leverage their tech-stack optimally to create credit products and
user experience which will redefine the investment and consumption landscape in the country."
