Below are Views On BFSI Budget Expectations By Lalit Mehta, co-founder & CEO of 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.”
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