FinTech Leaders Anticipate Key Policy Announcements in Interim Budget 2024-25

Finance Minister Nirmala Sitharaman is gearing up to present the interim Budget for the fiscal year 2024-25 in the Lok Sabha on February 1. While she has assured that the budget won’t feature any “spectacular announcements” akin to the 2019 Interim Budget, industry watchers believe it could bring forth significant updates.

Notably, FinTech leaders are voicing their expectations for dedicated policy announcements in various areas. Akash Sinha, CEO of Cashfree Payments, hopes for initiatives to boost digital payments adoption in tier 2 and beyond regions, a standardized KYC framework in financial services, and tax waivers.

Anand Kumar Bajaj, Founder & CEO of PayNearby, seeks tax benefits and a special 5% GST rate for startups involved in last-mile empowerment, aiming to extend financial and digital services to citizens. He also urges GST waivers on financial services from BC outlets and tax relief for the next seven years.

Manish Kumar, Founder & CEO of KredX, emphasizes the need for regulatory flexibility, support for incubators, and GST rationalization measures. He hopes for measures that enhance funding opportunities and simplify the fundraising process, aiming to foster innovation and international collaborations.

V Balasubramanian, CEO of FSS Cash Tech, calls for dedicated policies on cloud technology for payments and the inclusion of Central Bank Digital Currency (CBDC) in the budget for financial inclusion. He stresses the importance of expanding digital payments to smaller cities and towns.

As the Finance Minister prepares to unveil the budget, the FinTech sector anticipates a strategic roadmap that fosters innovation, financial inclusion, and growth in the evolving digital landscape.