Union Budget Expectation from Fintech / Payment Industry
Ketan Doshi, MD at PayPoint India
For the Payments industry, the honourable Finance Minister should reconsider the complete elimination of merchant discount rate (MDR) on Rupay and UPI transactions, which will support sustainable growth in digital payments.
To further Financial Inclusion in the country, the PMJDY transactions should be exempted from the GST levy. Bank accounts opened under PMJDY are basically of low ticket size. However, the operating cost to service this under-served community is very high till it reaches a substantial base hence the exemption.
Business correspondents, who play a pivotal role in financial inclusion, seek the removal of TDS on cash withdrawals. These Bank Mitras have been burdened with the tax deductions with a huge sum of money stuck in refunds, thereby deeply impacting their services in rural locations. This issue is leading to the drifting away of Bank Mitra from servicing the underserved. Hence it needs to be reviewed at the earliest.
Lastly, this Budget should have enough measures to infuse liquidity, benefiting small and medium enterprises, especially those in the hinterlands. PSU banks must lead these mandates in partnership with FinTech’s – either through co-lending or lead-generation model.
Comment on Budget expectations by Mr. Aneel Gambhir – CFO, Blue Dart
“While the onset of the pandemic affected the logistics sector, the sector has stood the test of time by supporting the movement of essentials and non-essentials when the nation was under lockdown. We expect the government’s full support to revive the sector and in order to do so, the logistics cost should be reduced from the present 14 per cent of GDP to less than 10 per cent since high logistics cost is impacting the competitiveness of domestic goods in the international market. Investing in better road infrastructure will fasten the movement of goods, help in reducing the costs and improve turnaround time for vehicles. Improvement of air infrastructure and connectivity will help the logistics industry to boost this sector.
Electric vehicles have the potential to aid in last-mile delivery while also adding to environmental protection. The Government should incentivize the use of electrical vehicles and focus on strengthening the infrastructure for enabling easy manufacturing and usage of EVs and EV-related elements. Similarly, Government could consider rolling back additional taxes levied on Petrol and diesel prices. The additional taxes levied during the pandemic are hurting the cost of transportation. It is also leading to high inflation.”
Mr. Sunil Agarwal, Chairman, RSH Global
Sunil Agarwal is a Co-Founder & Chairman of RSH Global Pvt. Ltd. His understanding of evolving needs of consumers guide him in leading Product Development & Marketing Divisions of RSH Global. His analytical mindset along with perfectionism inspires stakeholders to focus on continuous improvement in all activities.
Sunil Agarwal is a graduate from St. Xavier’s College in Kolkata. His passion of helping people feel better inspired him to enter the personal care industry and run the business successfully over past three decades. His presence of mind to optimise resources has helped the organisation to go through the journey from a humble beginning to an established one at present.
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