Union Budget 2022: Banking experts say, Budget proposals will provide opportunities for debt, equity investments

Governmentt’s focus on empowering citizens and providing impetus to digital means of banking will accelerate the digital and financial inclusion of the masses, say experts.

New Delhi: The Union Budget 2022 presented by Finance Minister Nirmala Sitharaman has been widely applauded by the banking and finance sector.

State Bank of India Chairman Dinesh Khara said, "PM GatiShakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition and Climate Action and Financing of Investments. On the banking and finance side the announcements are significant. The budget proposes to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks. This proposal is in sync with our ongoing digital banking initiatives." 

Aashit Shah, Partner, J. Sagar Associates (JSA) said that the Budget proposals will provide various opportunities for debt and equity investments across sectors.

"The Government has emphasised the need for improvement in the infrastructure space by launching the PM Gati Shakti scheme, which will boost investments in the transportation and logistics sectors. The thrust on digitisation is once again evident in the budget, especially with the setting up 75 digital banking units in 75 districts in the country. The focus on payment platforms that are economical and user friendly with boost digital payments and contribute to the growth of the fintech sector,” Shah said.

Rajeev Yadav - MD & CEO at Fincare Small Finance Bank said that the Govt’s focus on empowering citizens and providing impetus to digital means of banking will accelerate the digital and financial inclusion of the masses.

“Adoption of digital payments will provide ease of transactions and reduce friction leading to a less-cash economy. Also, 100% of 1.5 Lakh post offices to come onto a core banking system is a positive step and one with deep implications. Extension of the Emergency credit line guarantee scheme for small and medium sized businesses will give much-needed respite to these entities hit by the covid-challenges and provide a boon to lending,” said Yadav.

MD & CEO, Shriram City Union Finance said, "As part of the digital push, digital banking has been encouraged, this will assist the overall development of digital infrastructure and enable greater participation in digital lending."