Anticipation Grows in Indian FinTech for Union Budget 2024-25, Focused on Responsible Growth and Innovation

As the Union Budget 2024-25 looms, the Indian FinTech industry eagerly awaits measures that could fuel responsible growth and innovation within the sector. The budget is expected to spotlight financial inclusion, unveiling a streamlined credit platform aligned with the Reserve Bank of India’s commitment to ensuring easy access to credit for small businesses and individuals. This move aims to simplify and hasten the lending process, enhancing efficiency for borrowers seeking crucial financing.

Collaborative efforts with key stakeholders like SIDBI, NABARD, and the agriculture ministry are seen as crucial in elevating India’s digital commerce globally. The budget is likely to underscore the growth potential of initiatives such as ONDC and eCommerce for emerging India.

Despite the budget being a Vote on Account, FinTech firms hope for ongoing government support for digital infrastructure and technology adoption. The industry looks forward to initiatives that boost the adoption and expansion of rural financial services, supporting new FinTech-led business models.

Optimism surrounds the potential simplification of regulatory frameworks, with FinTech companies exploring innovative approaches to reach underserved populations. Increased collaboration between FinTech firms and traditional financial institutions is expected, leading to hybrid models that leverage the strengths of both sectors.

The RBI’s recent draft framework for regulating FinTech activities holds promise, with expectations that its finalization will guide responsible growth and innovation. The sector anticipates support for expanding beyond Tier-II regions, emphasizing empowerment for women-led enterprises. Additionally, hopes are high for lending solutions tailored to micro, small, and medium enterprises (MSMEs), along with advocacy for upskilling initiatives for the country’s young workforce.

Companies also look to the budget for provisions easing financial burdens, including calls for tax-saving benefits for fintech startups and policies incentivizing an environment conducive to innovation and product development.