Budget should have tax benefits for fintech startups: BharatPe CFO

Nalin Negi, CEO (Interim) & CFO, BharatPe

"Fintech has witnessed fast-track growth and expansion, driven by new-age technology over the last few years. By 2030, it is anticipated that the Indian fintech industry will generate $200 billion in revenue and $1 trillion in AUM, as per an industry report. Today, UPI has emerged as a de facto payment medium for millions and digital lending is also gaining acceptance across established as well as emerging cities. I believe that the fintech industry should be given additional benefits of tax deductions which are available for SMEs, so as to aid growth. Tax benefits and incentives will encourage fintech startups to focus on innovation, and invest in research and development to build new disruptive products. Additionally, favourable initiatives and supportive measures around the facilitation of stronger partnerships between banks, NBFCs and fintechs, would act as a force multiplier in expanding the reach of financial services across every corner of the country, while maintaining the right balance between innovation and regulation. Budgetary allocations to boost the digital payments ecosystem and further bolster our world-leading digital infrastructure would strengthen the fintech industry in line with the government’s Digital India vision.”

“Additionally, the government should roll out measures to boost the liquidity flow to fintechs and smaller NBFCs. This will, in turn, ease credit access to the underserved, thus furthering financial inclusion in the country. I also believe that in order to nurture the blooming startup ecosystem, the Government should further broaden the eligibility criteria so as to provide significant tax reliefs to employees in start-ups with regard to the burden around Employee Stock Ownership (ESOPs) on employees.”