Visi Money
The 2024 budget on February 1 is a mere vote on account but the banking and fintech sectors are ready for some reforms and announcements. Budget 2024: Tomorrow, Finance Minister Sitharaman will present her sixth budget, matching the record set by former Prime Minister Morarji Desai of presenting six consecutive budgets. She will be the second Finance Minister to achieve this feat. Though the Budget will be a vote on account, economists and experts feel the government will maintain its focus on fiscal consolidation, business and taxation law simplification, infrastructure development, support for MSMEs, and financial inclusion.
The banking sector is also expecting some reforms from the finance minister. During the Budget 2023, no allocation was made by FM Sitharaman for the recapitalisation of public sector banks, a signal from the policymakers that the health of these PSBs is in line with expectations. This was done for the second year in a row. Besides, the Budget Speech 2023 also stated that financial sector regulators would be asked to conduct a thorough evaluation of current regulations, taking into account input from the public and regulated entities. In 2023, the Reserve Bank of India has published several draft regulations for public feedback and actively collaborated with stakeholders.
Here are some of the key expectations that the banking sector for the year 2024-25:
- Digitalisation and cybersecurity
- Stressed assets and NPAs
- Digital infrastructure and digital payments
- Digital adoption and innovation
- More reforms for fintechs
- Investment for startups
- Liquidity ease for NBFCs
- Permitting NBFCs to offer credit cards
