As Union Finance Minister Arun Jaitley is planning to present the fifth budget of Prime Minister Narendra Modi-led government on February 1, The Banking & Finance Post brings to you a compilation of Pre-budget expectations from representatives of the Banking, Financial Services and Insurance (BFSI) Sector.
Sanjay Sharma- MD and CEO, Aye Finance
As we approach for the budget this year, one of the primary suggestions would be that the government should continue its firm stand on not allowing unnecessary loan freebies to the Agro or MSME sector. Passing on such freebies destroys the credit discipline and rewards the offenders, and thus indirectly punishes the diligent loan repayers. Further, the regulatory rules governing the fintech businesses need to be finalised on priority. Last year has seen these go through discussions and consensus building. This year should see the rules formalised into policy pronouncements. The focus of the regulators should be to enlarge the reach of organised lending, especially in bringing the excluded parts of the economy into the fold of organised lensing. Fintechs are, and will, play an important part in achieving this objective.
Manish Chaudhari, Co-Founder and CRO, CoinTribe
With Demonetisation and GST, the Govt has given a great boost to digital transactions and availability of financial records for Small business which is likely to provide a big boost in the coming years. This agenda can be enhanced by encouraging the Small Businesses with tax benefits for conducting digital transactions as this will build a strong foundation for sustainable Small Businesses. The overall expectation from this budget is also around lowering of income tax rates for businesses and professionals to encourage wider taxation coverage similar to the drive for increasing coverage in indirect taxes.
Given the growth in Fintech, it will be a welcome move if the govt. also creates some schemes to encourage budding Fintech entrepreneurs e.g. creation of Fintech Parks where space, high speed internet, basic admin facilities can be provided.
Surendra Kumar Jalan – Founder and CEO.
We expect the Government will continue with it’s focus and thrust on the digital India programme in the coming Financial Years.
P2P industry has vast potential to support and provide financial inclusions of the masses, who are currently deprived of the adequate financial support (Loans) for their Personal and Business needs. As P2P industry is in its nascent stage, we expect Government to provide adequate tax incentive to the lenders to encourage large number of investors (Lenders) to join in for lending through these platforms to provide Financial Support (Financial Inclusions) of the people deprived of credit
Ranjit Punja, CEO & Co-Founder, Creditmantri.com
As a fintech service which has data and technology in its core, the GST did not impact us directly; but this unified tax with and the recent systemic changes would bring about a much-needed digital push and increased accountability. We hope in the year ahead that the Digital India initiatives along with the GST which functions entirely online would bring about a shift in mindset and increased digital adoption.
Satyam Kumar- CO-Founder and CEO, Loantap.in
Start-ups are doing a great service to the Nation. Beside obvious things like job creation, FDI & innovation, they are bringing consumer centric approach to the business. This is pushing well entrenched old-world companies to look after customers as individuals with varying needs, unlike a production belt approach which they presently have towards the customers. Naturally ‘startup’ ecosystem needs soft-hand approach from government & regulators. Of course, the authorities also need to differentiate based on good and bad intentions of the startup.
Anurag Avula, Co Founder and CEO, Shopmatic
“The Indian Government is taking great strides forward in digitising the entire country with its Digital India movement. That opens a very big opportunity for businesses to go online and sell. We continue to look forward to further initiatives in the Union Budget 2018019, that will truly give Startups and Entrepreneurs a fillip in growing their businesses and taking them online.
The country has a great potential to foster a startup environment and with the right initiatives and incentives, can indeed go a long way in encouraging millions of talented individuals to succeed.