Bengaluru/Mumbai: In the run-up to the Union Budget 2024, Indian fintech firms are seeking regulatory clarity, hassle-free licensing procedures, tax considerations, and provisions for financial inclusion to facilitate easier access to credit for small and medium enterprises (SMEs), in their wishlist for the finance ministry.
Bengaluru/Mumbai: In the run-up to the Union Budget 2024, Indian fintech firms are seeking regulatory clarity, hassle-free licensing procedures, tax considerations, and provisions for financial inclusion to facilitate easier access to credit for small and medium enterprises (SMEs), in their wishlist for the finance ministry.
Clarity on regulatory, licensing norms
As the fintech industry looks to deepen their presence, they seek a clearer regulatory framework that establishes legal recognition, licensing procedures and supervision which will help level the field with traditional lenders.
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Clarity on regulatory, licensing norms
As the fintech industry looks to deepen their presence, they seek a clearer regulatory framework that establishes legal recognition, licensing procedures and supervision which will help level the field with traditional lenders.
Raj Narayanam, founder of Zaggle Prepaid Ocean Services Ltd, stated that a well-defined regulatory framework will only bridge the gap between the two and will foster financial inclusion for consumers.
Gautam Patel, founder and managing partner of Z3Partners, an early to growth stage venture capital firm highlighted the current lack of clarity in the licensing processes for fintechs that disrupts new-age players with limited time and resources.
With RBI license approvals that are a core area of concern for many fintechs, the lack of transparency in the process adds another layer of complexity in getting the necessary permits. “Fintechs struggle with understanding how long the approval will take. They end up following up repeatedly with different officers, which makes the process cumbersome. A transparent and regular process, where people understand the timeline and steps involved, would greatly improve the experience,” Patel added.
This comes against the backdrop of fintech startups having to apply for various licenses for the kind of services that they want to offer which includes payment aggregator license, small bank license, or a change in promoter at an non-banking financial company (NBFC).
Relief on cost structures, subsidies
Fintechs with a majority of customers in Tier II and other smaller markets are seeking tax benefits on total…
Read More: Budget 2024: Fintechs push for policy overhaul, seek regulatory clarity,