Budget 2019 expectations Highlights for Fintech Sector
Budget 2019: Union Finance Minister Nirmala Sitharaman is all set to present her first Budget on July 5.
Union Finance Minister Nirmala Sitharaman is all set to present her first Budget on July 5. The Fintech sector is expecting a big push through budgetary allocation, emphasis on financial literacy, focus on digital infrastructure especially in rural areas, incentives for digital transactions and more. Here, sector experts share their top expectations from Budget 2019 with Zee Business Online:
1. Rustom Irani, MD- Hitachi Payment Services: “Notwithstanding the effort to make India a less-cash society, cash still holds prominence in all our day to day payments. In order to build a less-cash society, the government should build a mechanism where everyone in the country is empowered with regulatory, social, commercial and infrastructure framework that will help in last mile access to financial and other primary services. The idea to create 1 lakh digital villages in the next 5 years in the interim budget was one step towards creating such a framework."
2. Irani said, "We expect that the upcoming budget will have more emphasis on financial literacy, push towards creating technology-led infrastructure and additional distribution channels in rural areas for last mile access.”
3. Himanshu Pujara, Regional Managing Director, Asia Pacific, Euronet Services India: "With measures being taken to make cash and digital payments more accessible to the common man, the Government has demonstrated its willingness to work towards a more financially inclusive and empowered India. From the past few years, the Ministry of Finance and the RBI has been creating an enabling environment for the payment sector."
4. Pujara further said, "We are optimistic that in this budget Govt will provide tax relaxations for fintech companies and payments players which will led us to increase penetration and provide better customer service through constant innovation."
5. Hardika Shah, Founder & CEO, Kinara Capital: "NBFCs play a critical role in the economic growth of India, they are no longer a niche side business. Any measures to ease capital flow will go a long way towards easing the liquidity crunch in the market, such as relaxing the FPI norms. And extending TDS exemptions for interest payments to NBFCs, just as banks and insurance companies enjoy."
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