Budget 2022: What Does Fintech Sector Expect From Upcoming Budget?

Budget 2022 Expectations: The Fintech sector wants the government to bridge the gap between financial institutions and users. Along with this, the sector also wants the government to relax the tax norms and enable large-scale digital penetration in the country.

New Delhi: With Budget 2022 just around the corner, anticipations regarding the budgetary allocations have been rising. Amidst all this, the Fintech sector wants the government to bridge the gap between financial institutions and users. Along with this, the sector also wants the government to relax the tax norms and enable large-scale digital penetration in the country.

On Budget 2022, Muralidharan Srinivasan, Head of Payments, APMEA Region, FIS, said, “We expect the Union Budget 2022 to further layout concrete measure for expanding digital infrastructure in the country that will lead to speedy transactions, and will encourage Fintech companies to create new digital offerings for people.”

Relaxation In Tax Norms

Most of the fintech companies want the taxes to be relaxed for merchants enabling digital payments. Digital payments have played a pivotal role during the Covid-19 pandemic. From ordering essentials to receiving treatment, digital infrastructure has been a powerful enabling force in India.

Srinivasan added, “In order to achieve greater financial inclusion, tax incentives to merchants/ companies who are empowering people with digital onboarding and payments in Tier II / III cities and rural India can be offered which can be a key driver.”

Vishal Bhatia, CFO, True Balance, said that Fintech companies and NBFCs have a very high expectation from the Union Budget. “Ahead of the budget, we are positive that along with slight relaxation on the taxes, liquidity support from bigger banks and the government will help keep the cash inflow for smaller NBFC’s”, he said.

Increase Digital Penetration In India

Fintech Sector also wants the government to take steps to enhance the digital penetration in the country. This would help the country to become cash-free in the near future.

Bhatia also added, “I am hoping for the budget to dive deeper into the FinTech system and push the community to bridge the financial gap between the users and financial institutions…we want personal finance to be accessible for everyone from any part of the world as ‘digital finance’ is the new way of living post-COVID-19. This will help us go the extra mile and elevate funding along with credit allocation to the end-user.”

Srinivasan had the same views on digital penetration. “We expect significant policies to be announced that may lead to increase in large-scale penetration of credit instruments in Tier II / III cities and rural India, and spur demand in the economy. We firmly believe that substantial improvement in digital infrastructure and advanced payment technology will eventually help in building a cash-free economy.”