The Union Budget’s announcement by the Finance Minister, Nirmala Sitharaman, was well received by the industry, especially with the extension of DigiLocker services to the fintechs and MSMEs it supports. The India Budget fintech sector also included several benefits for MSMEs, such as the credit guarantee scheme with a Rs 9,000 crore infusion, extended ECLGS until March 31, 2023, the RAMP program with an outlay of Rs 6,000 crore, and a credit of Rs 2 trillion under the CGTMSE scheme. These initiatives, along with digital services like PM Jan Dhan Yojana, Indian Stack, and UPI, are propelling the fintech industry toward sustained growth
India Budget Fintech sector impact
The Union Budget 2023, presented by the Finance Minister on February 1, 2023, has put a strong emphasis on the growth of fintech startups in India. The government has recognized the role that fintech startups play in driving digital financial inclusion and boosting economic growth and has allocated a significant portion of the budget to support their growth and development.
The announcement of the National Financial Infrastructure Registry promises to streamline consent-based availability of financial information, thereby widening credit coverage. In line with the prior RBI’s intent of promoting the Public Credit Registry, we hope that real-time credit information will be an integral part of NFIR.
India Budget Fintech in Rural India
India Budget is very positive for the rural economy as it talks about investments and credit schemes in agriculture, fishery, cattle etc and this would higher income for rural folks and now they may have higher capacity to have L5 ( e-rickshaw for comercial purposes) and better capacity to repay EMIs. Customs duty exemption is being extended to imports of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles to further boost green mobility.
This all is in line with government’s mission to deepen financial inclusion into rural hinterlands and propel economic development to next level in the sooner achievement of 5 trillion dollar economy status and what they refer to Amrit Kaal.
About Writer –
Mitesh Thakkar,
Founder – CEO
MissCallPay
