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In a bid to boost the pandemic hit economy, through the multiple investment announcement in the financial and banking sector. Finance Minister Nirmala Sitharaman on Monday tabled the first paperless Union Budget for 2021-22 in the parliament.
Here are some reactions of experts from the bank, and finance industry:
Narayan ‘Naru’ Ramamoorthy, Chief Revenue Officer, Global PayEX:
“At the outset, it is laudable that the Union Budget 2021-22 lays an increased emphasis on the use of data analytics, artificial intelligence, and machine learning across industries. We welcome the Government of India’s move in taking definitive steps towards using the power of digital technologies and boosting the fintech and startup ecosystem through initiatives such as the fintech hub in Gujarat International Fintech Tech (GIFT).
The benefits accrued through the allocation of Rs. 1,500 crores for promoting digital modes of payment as well as the increased tax audit limit for those who carry 95% of their transactions digitally will enable businesses, especially MSMEs to digitize their entire value chain and drive exponential impact on key business levers – innovation, growth, and efficiency.
Add to it, the proposed setup of Asset Reconstruction Company (ARC) and Asset Management Company (AMC) for stressed assets, which will help accelerate the much-needed credit line in B2B payables and receivables financing from the banking system. Further, the allocation of INR 3000 crore for skill development and facilitating a National Digital Educational Architecture (NDEAR) within the context of a Digital First Mindset will help bridge a sizeable technological skill gap in the country and offer the right engine of incessant growth, while setting the foundation for India’s future in the right direction.”
Mr. Ondrej Kubik, Chief Executive Officer, Home Credit India:
“Budget 2021 by Finance Minister Nirmala Sitharaman is pragmatic, positive, and committed to the progress of the economy that was impaired by the Covid-19 pandemic. In the current market scenario, Digital payments have witnessed a significant increase, and with the allocation of Rs. 1500 crore to strengthen the digital payments network across the country, we’re optimistic that this push towards digitalization will be a progressive effort to enhance the digital payment landscape in India.
With a major focus on healthcare and infrastructure, this year’s budget allocation with increased funding under the MGNREGA scheme by Rs. 19,091 crore due to the Covid-19 outbreak, will boost the rural economy in the financial year 2022. The new measure to set-up a bad bank to effectively deal with non-performing assets of the financial sector should be able to revive the financial institutions of the country. Proposed use of data analytics, Artificial Intelligence, and Machine Learning is a step in the right direction towards strengthening corporate governance when instances of fraud have become increasingly common.”
Varun Chopra, CEO & Co-Founder, Eduvanz:
“The budget 2021 puts good measures to clean up the NPAs in the banking sector by creation of an ARC and Asset Management Company this will certainly help the banking sector reeling under the pressure of COVID NPA’s.”