Union Budget 2022: MFIs, fintech expect bolder budget and allocation of more to MGNREGA scheme

Fintechs believe that the he government should also push the collaborative approach decided by the Reserve Bank to incentivise banking sector.

New Delhi: As Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2022 on February 1, MFIs and fintech sector emphasises on a strong need to simplify and standardize financing for MSMEs, and give impetus to consumption led growth of the economy.

Sadaf Sayeed, CEO – Muthoot Microfin said, “The economy has been on a rapid recovery path post the second wave of pandemic, corporate earnings for Q3 have been good so far for the industry. Similar trend can be seen in govt revenue, both direct and indirect tax collections have been higher than even pre pandemic levels. This trend will allow room for FM to take bold steps in direction of reviving private Investment and giving impetus to consumption led growth of the economy. Agri sector has once again recorded a very good growth of 3.9%. FM may go for a second round of PM Samman Nidhi DBT to farmers and consider allocating more to MGNREGA scheme to further promote development and employment in rural areas. Improvement in cash flow in rural areas would benefit microfinance companies”.

Harshvardhan Lunia, CEO & Co-founder at Lendingkart believes that the he government should also push the collaborative approach decided by the Reserve Bank to incentivise banking sector to partner with fintech lenders on various risk-sharing co-lending models to extend capital support to MSMEs.