Rakesh Singh, CEO – Aditya Birla Finance Ltd

The Union Budget 2020 brings good news for the NBFC and Housing finance sector. The slew of measures announced by the Finance Minister for both NBFCs and HFCs, including the relaxation in the FPI guidelines and Government’s guarantee provision to PSU banks for purchase of high rated pooled assets of financially sound NBFCs will go a long way in supporting credit flow and increasing the liquidity in the system. The return of regulatory and supervisory powers of HFCs to the RBI will lead to alignment of regulations.

The capital support and creation of a payment platform for the MSMEs will lead to more job creation and income to households as well as increase in productive capacity and consumption. The government has been consistent with its efforts in affordable housing segment and an additional deduction of interest on loans will drive sales and give further impetus to the affordable housing sector. With focus on digital economy, education, infrastructure and financial sector, the Government has set the ball rolling for the ‘New India’ to become a $3 trillion economy by this financial year.

The author is the CEO of Aditya Birla Finance Ltd.