Budget 2021: The budget expectations of common man

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Updated: January 14, 2021 1:40 PM

To lower the cost of customer acquisition and help increase financial and credit access, industry experts say the government should push to operationalize the centralized KYC database.

budget 2021, union budget 2021, indian union budget 2021, union budget of india, budget 2021-22, 2021 union budget of india, nirmala sitharaman, union budget 2021 news, budget 2021 india, budget 2021 expectationsThe common man has been struggling with disruptions in income and cash flow, since the time of lockdown due to Covid-19, because of which they have been looking to the banking sector for access to credit.

Union Budget 2021 Expectations: For the big year after the pandemic, the common man would undoubtedly look up to the Modi government and FM Nirmala Sitharaman for various incentives, tax cuts, subsidies, easier credit access and other benefits to cope up with the Covid-19 pandemic.

The common man has been struggling with disruptions in income and cash flow, since the time of lockdown due to Covid-19, because of which they have been looking to the banking sector for access to credit.

Shilpa Mankar Ahluwalia, Partner, Shardul Amarchand Mangaldas and Co, says, “Loans at affordable rates and a continued moratorium on loan payments (to the extent the stresses of COVD-19 are continuing) are big expectations.”

She further adds, “However, the banking and financial sector is under severe stress itself, and the costs of deferring interest and principal payments under moratoriums schemes cannot be absorbed by lenders long term. To the extent subsidies and additional relief is needed, these will need to come from the budget.”

To promote digital payments and improve credit accessibility, the industry is hoping that the government will continue its agenda to improve internet infrastructure and connectivity in Tier II and Tier III cities to support digital payments across these geographies.

Experts say digital literacy and financial literacy are critical to pushing the next wave of digital payments. Ahluwalia says, “The government should consider offering tax breaks and incentives to platforms that invest in customer awareness, digital literacy and financial literacy initiatives.”

To lower the cost of customer acquisition and help increase financial and credit access, industry experts say the government should push to operationalize the centralized KYC database.

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