<p><em>By Yogendra Kashyap</em></p>.<p> “In the upcoming Union Budget, we feel there will be more emphasis on newer and emerging technologies for financial inclusion as people have moved quicker towards digitalization especially post the pandemic. Financial Inclusion has been the focus for the government and there should be a push towards a digital economy for faster adoption. For the Tier-2/3/4 cities and the rural population to have seamless banking services at their disposal, there should be higher incentives for banking transactions through BCs so that more and more retailers offer money transfer, micro ATM, AePS etc. services”</p>.<p><em>(Yogendra Kashyap is CEO, RapiPay Fintech Pvt. Ltd</em>)</p>.<p> <em>By Dr Harsh Kumar Bhanwala</em></p>.<p>“Our budget expectation is for economic revival and as conveyed by the honourable Finance Minister and the honourable PM that the economic revival has to be expeditious. This would require greater efforts for financial inclusion including lending and in which banks, NBFCs and capital markets will have to play an effective role. NBFC be it microfinance entities or otherwise, they lend to SMEs and tiny units for varied purposes and they change their product profiles quickly based on clients requirements and as such cater efficiently for economic revival.</p>.<p>I would request that enhanced financial requirements of small and medium NBFCs be taken care for economic revival at an enhanced level than what it is today. We are very thankful to RBI and the Government that post Covid-19 phase a separate line was carved out for liquidity support for small and medium NBFCs which has resulted in extended lending by them for SME sector and also bear some of the liquidity problems that they face on account of non-repayment of loans etc. So, the first requirement is that such facilities should continue for another 2-3 years.</p>.<p>Secondly, can we think of a separate window for refinancing from Development Financial Institutions and banks small and medium NBFCs so that there is assured line of credit. Thirdly, we would like an exemption from TDS on interest income earned by NBFCs under Section 194A of the Act as available to the banks. Fourthly, a concerted effort for NPA resolution is necessary at the level of banks, as also NBFCs, now more important as the forbearance by RBI/ Supreme Court moratorium on repayment of loans is ending. Expeditious resolution can be strengthening of existing ARC’s or by other legally available options or we can resort to the idea of Bad Bank as is in circulation.”</p>.<p><em>(Harsh Kumar Bhanwala is Executive Chairman, Capital India Finance Ltd.)</em></p>
<p><em>By Yogendra Kashyap</em></p>.<p> “In the upcoming Union Budget, we feel there will be more emphasis on newer and emerging technologies for financial inclusion as people have moved quicker towards digitalization especially post the pandemic. Financial Inclusion has been the focus for the government and there should be a push towards a digital economy for faster adoption. For the Tier-2/3/4 cities and the rural population to have seamless banking services at their disposal, there should be higher incentives for banking transactions through BCs so that more and more retailers offer money transfer, micro ATM, AePS etc. services”</p>.<p><em>(Yogendra Kashyap is CEO, RapiPay Fintech Pvt. Ltd</em>)</p>.<p> <em>By Dr Harsh Kumar Bhanwala</em></p>.<p>“Our budget expectation is for economic revival and as conveyed by the honourable Finance Minister and the honourable PM that the economic revival has to be expeditious. This would require greater efforts for financial inclusion including lending and in which banks, NBFCs and capital markets will have to play an effective role. NBFC be it microfinance entities or otherwise, they lend to SMEs and tiny units for varied purposes and they change their product profiles quickly based on clients requirements and as such cater efficiently for economic revival.</p>.<p>I would request that enhanced financial requirements of small and medium NBFCs be taken care for economic revival at an enhanced level than what it is today. We are very thankful to RBI and the Government that post Covid-19 phase a separate line was carved out for liquidity support for small and medium NBFCs which has resulted in extended lending by them for SME sector and also bear some of the liquidity problems that they face on account of non-repayment of loans etc. So, the first requirement is that such facilities should continue for another 2-3 years.</p>.<p>Secondly, can we think of a separate window for refinancing from Development Financial Institutions and banks small and medium NBFCs so that there is assured line of credit. Thirdly, we would like an exemption from TDS on interest income earned by NBFCs under Section 194A of the Act as available to the banks. Fourthly, a concerted effort for NPA resolution is necessary at the level of banks, as also NBFCs, now more important as the forbearance by RBI/ Supreme Court moratorium on repayment of loans is ending. Expeditious resolution can be strengthening of existing ARC’s or by other legally available options or we can resort to the idea of Bad Bank as is in circulation.”</p>.<p><em>(Harsh Kumar Bhanwala is Executive Chairman, Capital India Finance Ltd.)</em></p>