FinTech Industry's Expectations from the Union Budget 2024-25

Here are the top expectations from the Finance Minister as the Union Budget 2024-25 is set to be presented tomorrow.

1. Regulatory Clarity and Simplification The industry seeks streamlined and transparent regulations that foster innovation while ensuring consumer protection. Clear guidelines on data protection and privacy are crucial for building trust and driving growth.
2. Incentives for Digital Payments To promote a cashless economy, financial incentives for businesses and consumers adopting digital payments are essential. Simplified GST regulations for digital transactions can further accelerate adoption. Specifically incentive for Cooperative Banks , PACS ( Primary Agricultural Credit Societies ) and Credit Societies ecosystem to be involved in digital payments ecosystem
3. Support for Innovation Tax benefits and grants for R&D in fintech innovations will propel the industry forward. Enhanced support for regulatory sandboxes to test new technologies can provide the necessary impetus for groundbreaking advancements.
4. Financial Inclusion Policies aimed at increasing digital financial services penetration in rural and semi-urban areas are critical. Tailored financial products for MSMEs will help in fostering inclusive growth.
5. Favorable Taxation Policies Rationalization of capital gains tax for fintech investments can attract more venture capital. Extending tax holidays for start-ups will sustain growth and innovation in the sector.
6. Cybersecurity and Fraud Prevention Government investment in cybersecurity infrastructure and awareness programs is vital to safeguard the digital financial ecosystem against evolving threats.
7. Encouragement for Digital Lending Supportive policies for the digital lending sector, ensuring consumer protection and business sustainability, will boost this burgeoning segment.
8. Cross-Border Payments Simplification Streamlined regulations for cross-border transactions will facilitate international trade and remittances, benefiting the economy at large.
9. Green Finance Initiatives Policies promoting sustainable finance and green fintech solutions will align the industry with global environmental goals.

The FinTech industry is optimistic that the Union Budget 2024-25 will address these areas, fostering an environment of growth, innovation, and inclusivity. Let’s hope for a budget that propels India towards a digitally empowered future!

#UnionBudget2024 #FinTech #DigitalFinance #Innovation #FinancialInclusion GRAMePAY GRAMeBIMA Auxillium Insurance Broking Private Limited