“It is a forward-thinking, balanced budget that gives particular attention to the financial industry. The Budget's announcement of a "risk-based" KYC procedure as opposed to a "one size fits all" strategy is well appreciated. Expanding the scope of DigiLocker will benefit fintechs as it will simplify the KYC process and enable more significant digital investment and lending adoption. Additionally, it will help bring down the customer on-boarding cost and lead to ease of business. Introducing risk-based KYC will also encourage small ticket-size investors to sign up on investment platforms by doing a minimum KYC. Simplifying the KYC process will enable more significant digital investment, and lending adoption decisions will ultimately aid the fintech sector in better consumer acquisition and database analysis. The initiative will help bridge the digital gap and further penetration of the internet and smartphone it has provided an opportunity to close the credit gap further.
The centres of excellence(CoE) on AI is a well-thought-off move. It will go a long way in learning and adopting AI in the country, giving impetus to the fintech and digital lending sector. It will aid in extending high-tech benefits, including penetration of digital credit to all parts of the country.
The overall restructuring of the tax slabs has simplified the new tax structure while, on average, giving consumers more purchasing power. The initiative is expected to boost investor sentiments towards savings in different asset classes and grow their investment portfolio.”