Fintech companies in the country predict significant changes in the forthcoming Interim Budget, which will be announced on February 1, 2024. The fintech industry has already seen regulatory adjustments in the previous year, and it expects the next Budget, announced by Finance Minister Nirmala Sitharaman on February 1, to further encourage financial inclusion. The budget is also anticipated to help micro, small, and medium-sized enterprises (MSMEs) by offering loan solutions. Furthermore, there is a focus on upskilling projects for the country’s young labor.
India’s fintech business has been flourishing in recent years, particularly during and following the epidemic. The fintech sector in India, which has been described as one of the world’s fastest-growing fintech marketplaces, has undergone significant transition and expansion. According to a CAFRAL analysis, roughly half of the 14,000 start-ups launched between 2016 and 2021 focused on fintech. The survey estimates that by 2030, fintech lending would outnumber traditional bank lending. This demonstrates the vast potential and growth opportunities in India’s fintech sector.
FM Nirmala Sitharaman stated in the Union Budget 2023 that Aadhaar, PM Jan Dhan Yojana, Video KYC, India Stack, and UPI have all helped to encourage fintech services in India.
The Digital Lending Association of India (DLAI) anticipates a specialized India Fintech Credit Fund (IFCF) that would provide inexpensive financing to fintech companies. The India Fintech Credit Fund (IFCF) is designed to help small and medium-sized fintechs by offering wholesale financing to digital lenders at a fair rate. This investment will serve to encourage the horizontal migration of fintech lenders outside Tier-4 cities, provide loans to women, include thin filers, and increase formal finance,” stated Mahesh Shukla, CEO and Founder of PayMe.