Union Budget 2023: FINTECH

The Tech Panda asked the FinTech sector what it thinks of the Union Budget 2023 policies for the industry.

Indian FinTech is already a force to be reckoned with, and the Union Budget 2023 presented by Finance minister Nirmala Sitharaman adds to it. The sector is welcoming the extension of the Digi locker services to startups to foster innovation in fintech services.

Read more: Union Budget 2023 wish list: FINTECH

The simplified KYC procedures of making PAN a common identifier for all digital systems is expected to contribute to the vision of digital India. Hopes are that the PAN-based KYC will enable fintech businesses to make customer onboarding easy.

While things are quiet on the cryptocurrency front, sometimes silence has meaning. Last year’s budget proposed a 30% tax on income from crypto and NFTs, which was received well.

HIGHLIGHTS

• Setting up National Financial Information registry for lending efficiency, financial inclusion
• Setting up Central Data Processing Centre for faster handling of admin work
• Digi Locker to be set up for use by businesses
• 100 labs for 5G services based application development
• Make AI in India: Three specialized AI centres to be set up in educational institutes

The Tech Panda asked the Fintech sector what it thinks of the Union Budget 2023 policies for the industry.

Tarusha Mittal, COO & Co-founder, Dapps and UniFarm

“The fintech sector is expected to become a $200 billion behemoth by 2030 and the current budget has extended the Digi locker services to startups to foster innovation in fintech services. India’s robust digital infrastructure will enable larger penetration of web3-related products and services.

The PAN-based KYC will enable fintech businesses to make customer onboarding highly convenient

“The simplification of KYC procedures by making PAN a common identifier for all digital systems will support the vision of digital India. The PAN-based KYC will enable fintech businesses to make customer onboarding highly convenient and at the same, simplify the KYC reporting to the relevant government authorities.”

Ambarish Parekh, CEO, PayCraft

“The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India. Digi Locker to be used as a one stop solution for reconciliation and updating of identity and address of individuals. This is a much-needed step towards ensuring data security with increase of digital transactions.

The budget 2023-24 supports India’s vision to enhance financial inclusion

“Fintech services in India have been facilitated by our digital public infrastructure including Aadhaar, PM Jan Dhan Yojana, Video KYC, India Stack and UPI. To enable more Fintech innovative services, the scope of documents available in Digi Locker for individuals will be expanded. The budget 2023-24 supports India’s vision to enhance financial inclusion. This will boost a secure payment ecosystem by enabling easy access to financial products in the country, it will also create room for technological advancements and innovations to offer simplified, user-friendly, and secure financial services and payment solutions.”

Kumar Gaurav, Founder & CEO, Cashaa

“While many crypto industry leaders had big expectations for the union budget 23-24 and requested some key reforms such as lowering the TDS rate from 1% to 0.01% and providing clarity on taxation, I, as the CEO of Cashaa, a neo-bank that provides services to hundreds of businesses in the crypto industry, honestly did not have lofty hopes from the Indian Government through this budget.

“This budget is very considerate knowing that the government is still trying to understand the crypto and is not saying anything about the crypto. So I appreciate that

“I genuinely believe that it is best to wait until the Indian government fully comprehends what cryptocurrency is and the value it can bring to the Indian economy. Overall, this budget is very considerate knowing that the government is still trying to understand the crypto and is not saying anything about the crypto. So I appreciate that.”

Pranay Jhaveri, Managing Director, India & South Asia, Euronet Worldwide

“The government has continued with its focus on a digitally inclusive society that can accelerate growth. With the proposed National Data Governance policy, data security, and user privacy will improve. The KYC process is also proposed to become easier, which will add further impetus to ease of doing business across the sectors and economy.

The budget seems like a step in the right direction and will serve to enhance India’s competitiveness

“To consolidate data available across multiple government agencies Digilocker and Aadhar will play a crucial role whereas PAN will act as a single reference point for more frictionless compliance. The budget seems like a step in the right direction and will serve to enhance India’s competitiveness.”

Haribandhu Patra, CFO, Lentra

“The Union Budget 2023 is focused on building a strong and resilient Indian economy with a focus on tech-driven development, leading towards a knowledge-based economy with a strong financial sector. The government’s focus on simplifying processes, expanding fintech services, and improving bank governance reflects its commitment to economic growth and stability. The announcement of 50-year, interest-free loans for states is expected to drive investment in infrastructure, leading to economic growth and job creation.

The government’s focus on simplifying processes, expanding fintech services, and improving bank governance reflects its commitment to economic growth and stability

“The increase in the agri credit target to Rs. 20 lakh crore and the computerization of agricultural credit societies are expected to boost the agriculture sector in the future. Under the National Data Governance Policy, simplification of KYC processes, expansion of Digilocker, and proposed framework for credit infrastructure will increase access to financial services for all and foster financial stability.”