Page 42 - Banking Finance February 2018

BUDGET

3 lakh crore for lending in FY 19 under PM's MUDRA Yojana for MSMEs definitely bring cheers to them. Also government's
initiative to focus on process digitization & easing the loan sanctioning process will help & encourage the emerging
fintechs like us which are taking efforts to digitize the ecosystem with increased acceptance by the ecosystem.

Focusing on Digitizing Banking: Although these initiatives will definitely help Fintech companies like us expand & help
bridge the credit gap for MSMEs, we are also hopeful to see government coming up with special tech measures to bring
out e-signature facilities within banks and enable access credit digitally removing the need for paperwork which usually
delays the disbursal.
Bringing innovative tech support like Blockchain: We are yet to match the security measures implemented in developed
countries, hence the decision to eliminate the use of cryptocurrencies and encourage the use if blockchain in payments
sector is definitely a wise decision by the government. Although several banks have started adopting blockchain technol-
ogy within their existing infrastructure, it will be note-worthy to see how this tech implementation is going to shape up
the financial inclusion of the country."

Harshvardhan Lunia, CEO & Co-Founder, Lendingkart Group
"The Union Budget for the year 2018 is in line with our expectations and requirements of the economy.
The country is still reaping the benefits from forward-looking initiatives proposed over the previous
financial year such as demonetisation, the GST rollout and the increased focus towards digitisation.
The programs that have been announced for the rural, agriculture, healthcare and manufacturing
sectors will drive essential growth. The continued focus on MSME's with the allocation of over 3000
crores for credit support along with backing the efforts of FinTech companies' will help in creating
more avenues of financial inclusion for the underserved segment. Bank recapitalisation will also sus-
Harshvardhan tain these efforts by adding much-needed credit in the market. The emphasis on complementing
Lunia
existing digitisation efforts by connecting villages through high speed optic fibre networks and build-
ing Wi-Fi spots will give an impetus to upcoming digital sectors that rely heavily on connectivity like FinTech and Edtech.
We are happy with the current focus of the Government, as the country continues on the path of 'ease of doing business'
it is great to see strong emphasis being put on 'ease of living' for the masses."

Maulik Doshi, Partner, Transfer Pricing and Transaction Advisory Services, SKP
Business Consulting LLP
"Government is focusing on moving from "ease of doing business" to "ease of living" - This indicates
active focus on macro-economic spending and long term focus of the government". "Government
promises a Minimum Support Price of 150% of production cost of agricultural produce along with
setting up of Gramin Agricultural Markets. This is a significant measure and would be a shot in the
arm for the small and marginalized farmers".
Maulik Doshi
"Allocation for associated food processing activities doubled to INR 1,400 crore. This would support
ancilliary food processing activities and complement the existing players in the food processing industry". "Finance Min-
ister introduces long term capital gains on sale of listed equity shares @10% without indexation benefit. Shares pur-
chased up to 31 January 2018 will not be subject to this requirement. Further, gain in excess of highest price in last 6
months will only be taxed. The FM has taken certain measures to ensure that existing investments are not affected and
wide fluctuations in the stock market are avoided".
"Corporate tax rate reduced to 25% to companies having turnover up to INR 250 crore in FY 2016-17. This will cover
most of the MSME companies, however still leaves out newly set up MSME enterprises". "Education Cess increased from
3% to 4%. This will be seen negatively with the taxpayer community at large. For a salaried taxpayer, the marginal
gains made through introduction of standard deduction could be taken away through this increase in the cess".
"Government is focusing on moving from "ease of doing business" to "ease of living" - This indicates active focus on
macro-economic spending and long term focus of the government"

42 | 2018 | FEBRUARY | BANKING FINANCE

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