Union Budget 2026-27: Here're key challenges in financial services sector
Rising unsecured loans, fintech-led credit growth and UPI frauds are straining NIMs, pushing NBFCs to seek refinance support, tax relief and easier recovery norms
 "Union Budget 2026-27: Here're key challenges in financial services sector")
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Key challenges
- Pressure on net interest margin (NIMs) declines due to falling Current Account Savings Account ratios
- Unsecured loans drive 53 per cent of retail slippages
- 36 per cent growth in fintech credit Y-o-Y , (70 per cent unsecured)
- Digital frauds tripled especially UPI-related scams
- Low financial literacy and legacy systems increasing vulnerability
Industry ask
- A dedicated refinance window for NBFCs, similar to NHB
- Easier SARFAESI enforcement norms for NBFCs
- Lower tax rates on fixed deposits to boost low-cost deposit mobilisation
- Fiscal support for private capex revival and strengthen financial system resilience
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