The government will present the Union Budget for the financial year 2022-23 on February 1. In each annual budget, policy changes impacting the common man are rolled out. Besides this, the budget also addresses concerns of various sectors in the economy. Now since the ongoing Covid-19 pandemic has also led to a rise in inflation, both the people and industry expect relief measures to prevail over the upcoming budget and ease the post-pandemic financial strain.

 

One industry that has played a stellar role in your financial lives and needs special attention from the government this year is the fintech sector. From getting your KYC done online in a hassle-free manner to avail of instant loans, fintech has reduced your physical interactions, eliminating bureaucratic hurdles.

 

Here is what I expect from the government sector for the fintech sector:

 

 

The Reserve Bank of India (RBI) has taken many steps, including the setting up of a dedicated fintech department recently and publishing the report of the Working Group on digital lending to streamline and promote innovations in the fintech lending space.

 

Digital aggregators or online marketplaces such as BankBazaar who collaborate with banks and NBFCs already fall under the outsourcing guidelines of RBI. In this regard, a few recommendations and comments have already been submitted through the industry’s forum FICCI. The fintech industry now expects generous support from the central bank to keep growing at a rapid pace like in the past and overcome subdued economic sentiment due to the ongoing pandemic.

 

 

Now when the Working Group recommendations have already come out and a dedicated fintech department is also carved out, this is the right time for discussions and dialogues with the fintech industry to address some regulatory concerns.

 

Since these are new developments, the industry’s inputs need to be incorporated and more clarity is required from the apex bank for smooth functioning and strong growth of fintech and digital lending marketplaces. Once again, we thank the RBI for its constant support and initiatives to stimulate fintech growth in the country.