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Budget 2019: Govt To Take Strong Policy Initiatives To Become A FinTech Hub
In order to boost the growth of the fintech sector in India, the Government will have to take strong policy initiatives with a stated mission to become a global fintech hub by the year 2020.
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2019 has started on a good note for the Fintech industry supported by both the ministry of finance and the RBI. We saw new product launches, bank and fintech collaborations and huge investments coming in to the sector. With Finance Minister Nirmala Sitharaman all set to present the first budget of the new government, here are a few expectations from the upcoming budget session:
We hope that this budget would have initiatives aimed at driving digital adoption and expect the new government to push forward new reforms as part of ‘Digital India 2.0’.
The government has taken tremendous efforts to promote 'Digital India' but there is scope for growth especially in interiors of the country. After the Aadhaar verdict, we hope that the government brings more clarity in the e-KYC process. A policy framework and budget allocation, if placed, for the adoption of the Electronic National Automated Clearing House (e-NACH) and DigiLocker technologies can act as a catalyst in further helping the industry and consumers at large. This will also enable small value lending without excessive documentation and ease the lending process altogether especially to the previously unbanked population of the country.
We hope that this budget further strengthens the mandate of the Fintech Committee to make India the top Fintech innovation centre in the world by ensuring policy to fast track paperless and presence-less access to finance.
Although the government has strengthened its measures to curb cyber frauds with the National Security Council Secretariat functioning as the nodal agency, they should implement stricter laws and policies and conduct programmes to spread awareness about the cyber threats and how to deal with them.
We also hope that the coming budget will offer further tax sops as well as some special incentives offered to startups, and overall reduction in corporate tax.
All in all, in order to boost the growth of the fintech sector in India, the Government will have to take strong policy initiatives with a stated mission to become a global fintech hub by the year 2020.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.