Budget 2022: Fintech startups hope for support for NBFCs, peer to peer lending, clarity on crypto taxation

New Delhi: Fintech startups are seeking a level playing field for all players, support for peer to peer lending, NBFCs, and ease in credit flow with the upcoming Union Budget for the financial year 2022-23. 

Mswipe’s Ketan Patel expects the government to make announcements that will empower small businesses, thereby reviving the economy from the impact of the pandemic. He also expects the government to extend the Special Credit Linked Capital Subsidy Scheme for the MSMEs in the services sector for SMEs with turnover is less than Rs 5 crore. 

“Subsidizing the cost of funds to NBFCs that focus on lending to small merchants for loans below Rs. 20 lakhs is a way to ensure easy access to credit. Besides, we expect the Finance Minister to increase credit guarantee for lending while also providing relief in terms of tax sops or subsidizing manpower cost for digital players to promote digital payments in tier 3 to 6 towns,” he said. 

Nitin Mathur, CEO, Tavaga Advisory Services, said, “In the last two years, the fintech sector, which has always been a dynamic space, has seen a rapid influx of developments. First, we saw a huge increase in e-commerce and a shift toward contactless payments as a result of the pandemic. The industry clearly expects a level playing field for all the FinTech players.”

Meanwhile, Rajat Gandhi, Founder & CEO, Faircent.com, "We have enabled individuals and MSMEs across the country by disbursing over Rs. 3,000 crore loans to date. Even during the complete lockdown, we were disbursing loans to creditworthy borrowers. Online P2P lending has emerged as a powerful source to bridge the existing credit gap.”

“Peer to peer lending is a successful model globally for alternate financing. RBI has recognized this innovation and has issued guidelines for the same. Now we need government's support to strengthen our contribution towards it's vision of financial inclusion," he added. 

Archit Gupta, Founder and CEO, Clear, has requested the government to come up with clarity on cryptocurrency taxation. “While the government is waiting on the cryptocurrency bill, much-needed clarity is expected on its taxation in the upcoming Union Budget 2022. There are various concerns about the taxation of crypto, its classification, applicable tax rates, TDS/TCS and GST implications on the sale and purchase of cryptocurrencies, etc. which we are hoping will be clarified during the budget session.” Also Read: Budget 2022: Banking sector experts seek hike in FDI limit, reduction of govt stake in PSBs

Further, Sanjay Sharma, MD Aye Finance, “The repeated wave of covid pandemic has caused  commerce to get into a stop-start stop uncertainty. Micro and small enterprises are struggling as their buyers are fearful of spending their meager savings. Over 95% of businesses in India are micro scale businesses, and these have been an important driver of the growth of our economy. These can also become a big drag on the recovery if the situation does not change." Also Read: AGS Transact Technologies IPO gets 1.42 times subscription on second day of offer

Meghna Suryakumar, Founder & CEO, Crediwatch said, "Simplify banking norms and encourage a digitisation of financial services to aid the Fintech Sector. Further investments in strengthening digital public infrastructure."