India now boasts more than 7,000-plus fintech players, and the majority of them expect further tax relief and the Union government’s continued focus on digital innovation. Fintech startups and other stakeholders in the fintech ecosystem expect a positive budget in 2023, and there is a broad feeling among the majority of players that the government will push for more digital-led innovation.
Measures such as better streamlining of digital KYC, continued focus on digital banking units, and continued investments in infrastructure and new technologies such as AI and ML, blockchain, and chip manufacturing, will help support the growth of the fintech industry by growing new sectors in the economy. At the same time, many players expect a reduction in startup taxes with no GST until annual revenue of Rs 10 crore will further help the fintech players.
“Initiatives are expected in the digital KYC ecosystem.” Digital KYC is subjected to security breaches and threats, the installation of security infrastructure is mandatory and the costs involved are hefty, also, there is a need to train the staff to use various technologies for Video KYC, hence, financial assistance in KYC compliance would be of much help,
Fintech experts are of the opinion that the government’s focus on setting up 75 digital banking units in 75 districts should be continued this year as well. “The involvement of existing fintech players and especially corporate banking correspondents which are bank agnostic in driving digital banking units will help in further expanding necessary universal banking services to the last mile over restricting to one bank brand services and enable us to take a step further towards our goal of financial inclusion through rural empowerment,” said Dilip Modi, founder, Spice Money. He feels that there should be tax reductions in the upcoming budget that could help small merchants provide financial services to rural citizens. As this will help in minimizing the cost of providing financial services and foster deeper financial inclusion in the hinterlands of the country
Experts expect that a strong focus needs to be laid on priority sector lending, and credit access should be granted to those who are otherwise deprived of the facility. “Measures should be directed towards ensuring that market participants have enough liquidity to support new credit customers. Further, the government should implement the necessary measures for improved partnerships with banks
Bhatia further observes that the budget will contain sup
