'Increase lending limit for unsecured loans in budget'

Union Budget 2021: Increase lending limit for unsecured loans, says Razorpay CEO

The need of the hour is to explore ways to further adoption of digital payments, he says

Harshil Mathur, CEO & Co-founder, Razorpay. Credit: Razorpay

By Harshil Mathur

The pandemic has impacted all sectors and businesses of all sizes. While some industries have seen a bit of turnaround in the past few months, it is essential to have inclusive policies that will enable ease-of-doing-business in this new order, while allowing small businesses to prosper. It would be desirable to have increased loan limits for unsecured loans, thereby helping small businesses have better access to credit and working capital. Hassle-free loan disbursements, automation of tax and compliance, paper-less approvals, and incentives to adopt digital banking practices will be critical changes to look for.

We’ve seen a substantial spike in the adoption of digital payments in the last few months of Covid-19 and the need of the hour is to explore ways to further this adoption. I’m hoping that in the upcoming budget, the Government will think of alternatives to the Zero MDR policy, one of the alternatives could be providing tax incentives for MSMEs towards accepting digital payments, as that will help promote e-payments and drive significant digital adoption amongst businesses. Initiatives like these will also lead to new innovations in the payments infrastructure,  thereby creating solutions and tools that respond to both, shifting customer demands and need for customised solutions for MSMEs.

(The author is CEO and Co-Founder, Razorpay)