Budget Reaction Quotes from leading FinTech companies – LenDenClub, Sarvatra Technologies and CASHe

Bhavin Patel, Co-founder & CEO, LenDenClub

“Union Budget 2022-23 started on a positive note with a vision for India@100. The measures announced have huge potential to pave a robust growth path for the next 25 years which can make India truly progressive, technologically advanced, and financially strong. Laying substantial focus on MSMEs who account for more than 30% of India’s GDP is extremely encouraging which will go a long way in driving economic growth and employment. The 6,000-crore programme to rate MSMEs to be rolled out over the next five years and the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023 are huge strides towards enhancing capital access to MSMEs’ and making them more resilient and competitive.

Although few tax slabs were anticipated, especially if returns from Peer-to-Peer (P2P) lending investments may have been exempted under Section 80C of the Income Tax Act or a different provision could be carved out to minimize tax rates, it would have encouraged investors to invest more.

Extending the time of incorporation of the eligible start-up for tax incentives by one more year is hugely encouraging for aspiring entrepreneurs and the startup ecosystem.

Overall it is a growth-oriented budget offering a slew of measures to drive consumption, investment, and economic revival in the aftermath of the pandemic.”

Mr. Mandar Agashe, Vice-Chairman & MD, Sarvatra Technologies Ltd.

“It is a digital budget. It has been an overall balanced budget with many positive announcements relating to digitization. We appreciate the government for taking a step forward with its ‘Digital India’ initiative by proposing 75 Digital Banking units in 75 districts by scheduled commercial banks. The measure will ensure the acceleration of digital payments across the country. Further, introducing an online e-bill system will reduce payment delays and be wholly paperless and end-to-end encrypted. Given the rapid rise of digital banking, digital payments, and FinTech innovation, it was critical to develop digital infrastructure to support digital banking, which has enormous potential. Another excellent initiative of bringing in a blockchain-based digital rupee will lead to instantaneous financial transactions instead of the current digital payment system. We foresee that the digital rupee will be a game-changer and might outperform other digital currencies which are currently available.”

Joginder Rana, Vice Chairman & MD – CASHe

“The honourable finance minister must  be congratulated  for striking a right balance of growth and stability. The budget is growth-oriented, virtually touches all sectors, and lays down a path for a future-ready digital India. The monetary support for the digital payment ecosystem is a welcome move and also appreciable is the introduction of the blockchain-aided ‘Digital Rupee’. Its instantaneous feature may disrupt the entire financial transactions like transfers, payments, credit etc. It certainly sends a strong message that India is at the forefront of technology adoption. Finally, the extension of the ECLGS scheme will be of immense help for MSMEs as it will give the much-needed impetus for new businesses to come to the fore.

As we commemorate 75 years of Independence, we welcome the remarkable initiative to establish 75 digital banking units in 75 districts across the nation. It will aid in extending high-tech benefits, including penetration of digital credit to all parts of the country. The issuance of digital currency by RBI using block chain technology  a step that  would further stimulate the architecture of the digital economy, which is an objective of India@100.

Furthermore, extending the tax holiday for another year till March 2023 will help businesses endure the economic slowdown inflicted by the COVID-19 outbreak. This will also mean more significant activity in the investment landscape, enabling robust early-stage venture funding possible for start-ups.”