Below are Views On Fintech Budget Reactions By Lalit Mehta, Co-founder & CEO of Decimal Technologies
“The budget presented seems to tick most boxes that India needs today post COVID. The promise on CAPEX should help in generating employment and also solve for long-term growth objectives. The six pillar focus will set the foundation for growth in coming years and make us better prepared for difficult situations like the COVID.
Some of the items that would see effect faster than others would be the FDI cap increase for Insurance, which will surely lead to a better capitalized Insurance sector and better reach of Insurance to the masses.
Privatization of PSBs is a welcome move. It should help in make the banking sector more agile and oriented towards digital growth. This should lead to a few acquisitions of PSBs by private lenders. Hopefully, this will increase reach of the private sector to rural markets and will enable these markets with new products and a digital ecosystem. The fintech hub in the GIFT city is a great step towards enabling the fintech industry and shows the government's recognition of FinTech as a significant play in the financial sector.
This should set the road for creation of the required regulations and frameworks for FinTech to work with conventional lenders and banks. Fiscal deficit and achievement of divestment targets is something that needs to be under close watch. Any slippage on any of these can put a spanner in some other initiatives. Overall a positive budget that tries to balance between long term and immediate needs.”
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