'Boost liquidity flow to NBFCs, FinTech companies'

By Sudhesh Chandrasekar, Chief Financial Officer, slice

The NBFC sector has witnessed a liquidity crunch in the last few years. Therefore, boosting the liquidity flow to fintech and smaller NBFCs focused on consumer credit would be key to reviving economic growth and putting the economy back on a double-digit growth rate trajectory. In a bid to ease lending, the government also could promote banks to specifically fund fintech and smaller NBFCs which are furthering financial inclusion in the retail segment. Another welcome move could be the Extension of tax sops on MLDs which has the potential to increase the flow of capital to the fintech space. The government’s policies can also be helpful in promoting the flow of overseas capital by easing the requirements and thresholds for Indian debt instruments. Similar to credit guarantee schemes for Micro and Small Enterprises (MSEs), I'm hoping the Government would look at credit guarantee schemes for retail borrowers to boost retail demand.

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