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#Budget2022WithSMEStreet: Expectations from MSME Credit & Fintech Perspective

Stay tuned on SMEStreet in order to understand MSME and Small Business perspective ahead of Union Budget 2022-23. #Budget2022WithSMEStreet:

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 Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital capturing his expectations from Union Budget 2022-23. 

“Union Budget 2022-23 is highly crucial to align Indian economy’s growth trajectory. It is essential that the Hon’ble Finance Minister announces effective measures to enable speedy recovery and growth of the MSMEs, considering the sector’s significant contribution to the economy. It is encouraging to see Government’s support for the MSME sector in last 12-15 months and we believe the efforts will only become more prominent in the time to come.

In past few years, operationally nimble and technologically oriented NBFCs and Fintechs have deepened the credit penetration to the underserved regions of the country. Hence, in the upcoming budget, policymakers should provide due consideration to boost liquidity support to the NBFCs as well as encourage frameworks like co-lending, which will greatly boost the reach of financial institutions and progress in the financial inclusion imperative. EASE 4.0 talks about Co – Lending between Banks and NBFC as a means to increase the credit penetration, however the treatment of Tax Deduction at Source (TDS) treatment for NBFC and Banks are different and that is proving to be a major operational challenge to accelerate credit. It is expected that TDS rules would be harmonised between Banks and NBFCs.”


Akash Sinha, Co-Founder & CEO, Cashfree Payments elaborating on his expectations from the upcoming budget.

“The upcoming Union Budget holds high significance, as the Indian economy takes strides towards its complete recovery and growth post the pandemic. This imperative will be greatly supported by enhanced financial inclusion and digitalization which makes it crucial that appropriate measures are announced in this regard. It is heartening to see the Government’s recognition of fintechs’ ability to reach out to the unserved and underserved sections of the country, as evident from multiple initiatives in recent times. To further scale financial inclusion, it is essential that the government’s support is directed towards boosting digital infrastructure and innovation. Additionally, policy and regulatory efforts should be aimed at creating a favorable investment environment. While ensuring an appropriate degree of regulation, easing the investments in unlisted private businesses, especially in non-metro cities is crucial for convenient capital flow to technology start-ups towards their healthy growth. In the same respect, reducing the entry limits for Alternative Investment Funds (AIFs) and syndicates, aligning with the Government’s allocation to priority sectors, will ensure fund infusion to businesses.”

 

 

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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