2024 Budget: FinTech fuels inclusion, protection, and digital progress.

January 31, 2024
1 min read


The Indian fintech sector is anticipating the upcoming budget to support financial inclusion, consumer protection, and digital advancement. Expectations include incentivizing fintechs that empower underprivileged SMEs, maintaining the profitability of state-owned banks, and introducing measures to increase credit penetration in tier-2 and tier-3 markets. The budget is also expected to simplify financial service regulations and emphasize digitalization. The sector hopes for a balanced approach to regulation that encourages innovation while safeguarding consumer interests.

The Indian fintech sector is eagerly awaiting the upcoming budget, with expectations centered around key areas including financial inclusion, consumer protection, and digital advancement.

One of the key expectations is to incentivize fintechs dedicated to empowering underprivileged SMEs through financial and technical support. This aligns with the government’s commitment to fostering inclusive growth and leveraging the transformative potential of fintech.

The sector also hopes for measures to maintain the profitability of state-owned banks, enhance credit guarantee schemes for MSMEs, introduce production-linked incentive schemes, and augment subsidies for small businesses.

Additionally, the sector anticipates announcements related to the management of Non-Performing Assets (NPAs) to fortify the financial services industry against potential risks.

A significant expectation is the introduction of financial inclusion measures to increase credit penetration in tier-2 and tier-3 markets, benefiting over 64 million MSMEs and underserved individuals.

The budget is also an opportunity for the government to simplify and clarify financial service regulations, encouraging collaboration between traditional lenders and fintechs. This collaboration will help accelerate the creation of smart, risk-tailored solutions by leveraging analytics and technology for faster credit assessments.

The fintech sector remains optimistic about the government’s commitment to implementing policies that stimulate sectoral growth, enhance outreach, and amplify India’s digital presence. India’s existing digital infrastructure has been instrumental in propelling the fintech sector’s growth, and further emphasis on digitalization is expected in the upcoming budget.

However, as the sector evolves, there is a need for a nuanced approach to regulation and policymaking. Striking a balance between fueling innovation and safeguarding consumer interests should be a priority.

The budget presents a crucial opportunity for the government to encourage innovation, ensure consumer protection, and bolster digital infrastructure. It is a strategic moment to bring more Micro, Small, and Medium Enterprises (MSMEs) into the formal framework, thereby contributing to sustained economic growth.

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