Budget 2024: Fintechs seek regulatory clarity, improved licensing, tax reforms
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. 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.
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