Before the Finance Minister Nirmala Sitharaman presents the Union Budget in the Parliament on February 1, 2021.
Here’s what the BFSI sector expects from Finance Minister Nirmala Sitharaman:
Mr. Kailashnath Adhikari, Managing Director, Governance Now – A Sri Adhikari Brothers (SAB) Enterprise:
Budget 2021 is looked upon with a great deal of expectations as it is budget right post the pandemic induced year.
The industry will look forward to a great deal of measures being announced to boost demand. Measures taken to boost demand will lead to increased consumption which in turn will aid the revival of the economy.
The BFSI sector has faced great headwinds due to the pandemic. The sector will certainly look forward to measures that will help them raise capital and measures which will augment their process of capital lending.
A revival of consumer sentiment will help banks & financial institutions improve their personal lending portfolio. As far as corporate India is concerned any incentive measures which will help them make the further investment will be directly related to enchanted corporate lending by the BFSI sector.
The sector will certainly look forward to incentives being announced which will ease their process of lending.
Lalit Mehta, co-founder and CEO, Decimal Technologies:
“The lockdown brought with it an economic downturn for enterprises of all sizes, which urged the government to offer Loan Moratorium to borrowers amidst liquidity crunch.
While this helped kick-start the economy, the government must introduce a long-term stimulus in its upcoming budget to ensure cash-flow for the BFSI industry.
In the post-COVID19 economy, credit is going to be the enabler of businesses, we expect the government to introduce credit schemes that will provide a fillip to the sector.
Schemes that would ensure continuous availability of credit as and when needed will provide a great boost, especially to the lending industry.
During the lockdown, borrowing, for both commercial and personal purposes, increased, facilitated by FinTech players. We expect the government to announce necessary regulatory changes that would create an easy line of access for FinTech players to secure credit from conservative banks and further disburse loans to borrowers.
Covid-19 catapulted India into a digital economy and the FinTech start-up ecosystem witnessed some high-value investments in 2020.
While the PM has already announced a Rs 1,000 cr Startup India seed fund, the FinTech start-ups can further benefit from the launch of a fund focused on equity capital requirements of start-ups in the lending space. This will help give steam to India’s $ 5-trillion GDP target by 2024 and fill the $380-billion MSME credit gap.”