“In the last few years, Fintech has already begun transforming the Financial Services ecosystem in India and while the Government’s intent to provide an enabling environment is clear, the industry hopes for further ease in policy and processes. As the hotbed of the next billion Internet users, Fintech companies would increasingly look at serving rural India. Increasing digital transactions penetration would require concerted awareness efforts and it is hoped that the budget would account for incentives to companies looking to invest in and grow this market.
As data security and privacy becomes increasingly critical, it is expected that the Government, through the budget and other policy measures, would balance this against the commercial realities of viably operating in the Fintech space and thereby bring in valuable information and benefits for the consumers at large. Finally, an issue that is broader to the startup and unlisted companies – angel tax. The interim budget would hopefully reconsider provisions of the Income Tax Act as applicable to investments in unlisted companies by investors. This shall provide much-needed relief to the startup space and promote innovation, which is one of the current requirements for the Indian economy.”