Demanding demand for tax concessions in the upcoming budget, the Fintech industry emphasizes that fiscal and non-fiscal incentives are needed to promote financial inclusion and move towards a less money economy.
Industry and Fintech experts have urged Finance Minister Nirmala Sitharaman to reduce TDS tariffs, saying that such a measure will free the capital for this sector without the impact on government revenues.
Sitharaman is scheduled to present the Union budget for the next financial year in February 1.
Nitin Jain, Partners, Financial Services, Indian PWC, Qualification Criteria said for digital lenders, short-term credit, partnership guidelines, data governance norms, transparency norms are all needed To ensure an optimal business environment for digital loans.
Mihir Gandhi, the leader of the Transformation of Partners & Payment, PWC India, emphasized the increase in the scope of the Payment Infrastructure Development Fund (PIDF) and introduced the central bank’s digital currency for wholesale and retail payment transactions.
Shruti Aggarwal, Co-Founder, Stashfin, said that women’s financial empowerment also leads to his family which is financially empowered.
It will be encouraging to have a budget guided by this principle, with a specific focus on the inclusion of digital finance of each woman to enable it financially ‘Atmanirbhar’, he said, and expressed hope that the budget will provide incentives to smaller NBFC.
Led by female entrepreneurs through tax discounts.
At what it should be in the budget, Kapil Mehta, Co-Founder, SecureNow, said Fintech played a major role in providing access to finance and insurance for small businesses and individuals in remote areas.
“Will be very helpful if, in the budget, TDS rates for Fintech startup are reduced to 1 percent.
This will free work capital which is very much needed without firm expenses because TDS is returned in the case of making a loss,” he said.
Mehta also suggests to stimulate financial access, the government can have large PSU creating financial inclusion funds, similar to CSR requirements.
This fund can be commercially run.
In the midst of great expectations of February 1, Praveen Dhabhai, COO, Payworld, said Fintech had played a major role in promoting transparency, economy without cash and access to payments on time to remote corners in the country.
“It is very important to provide a conducive environment for new and existing Fintech companies / startup, in terms of ease access to funding at the level of concession and reducing taxation by providing ‘infrastructure status with special provisions for new but important nation buildings such as Fintech “Dhabhai said.
Nitya Sharma, CEO & Co-Founder, Simplif, stressed that there is an urgent need to deepen financial inclusion and create a stronger financial ecosystem that will be able to withstand future disturbances such as pandemics, much better.
“Even though Bank PSU has actively explored partnerships with Fintech New-AGE to change themselves digitally, initiatives from the government in the form of sufficient incentives, outreach programs for digital channel adoption and streamlines from digital financial channels are currently needed to deepen inclusion finance throughout country, “he said.
Manan Dixit, founder, fidypay, said in the Indian countryside the gap in the financial inclusion was still visible.
“To bring it all to the financial inclusion platform, we must first enable UPI at cooperative banks and microfinance institutions.
After completion, their customers, unorganized sectors, small businesses, farmers, truck drivers, and individuals will be able to make transactions Digital in their daily lives, “said Dixit.
At his expectations of the budget, Vineet Tyagi, Global CTO, Biz2x, said the government had to allocate benefits and resources to accelerate digital innovation to enable banking space to adapt to the changes that occurred over the past two years.
The bank is asked to adopt proactive outreach programs to make access to comfortable credit.
The government must shift from a cash drive to a digital oriented economy and not thinning for a smooth functional economy, “his advice