Non-banking finance companies (NBFCs) and fintech players have urged Finance Minister Nirmala Sitharaman to enhance the lending facilities by three to four years which were announced and extended by the Reserve Bank of India (RBI) during Covid-19 lockdown.
"As expressed by the Prime Minister, there is a need to revive economic growth. This requires great effort for financial inclusion, including increased lending," said Harsh Kumar Bhanwala, Executive Chairman of Capital India.
Banks and capital markets play a big role but NBFCs -- be it micro-finance or otherwise -- also play a significant role in lending for small and medium enterprises. They serve in areas where banks are not accessible, said Bhanwala.
"Secondly, we request a separate window from refinancing entities for these small and medium NBFCs so there is assured line available to them for all type of accounts."
Bhanwala said the Income Tax Act section 194 provides exemptions to banks for tax deduction at source. Such facility should be also extended to NBFCs because they are also regulated by the RBI.
Yogendra Kashyap, Managing Director and CEO of Rapipay Fintech, said the government should encourage financial transactions through mobile phones.
"We are expecting the government to continue promoting financial inclusion to the last point in rural India. Some incentivisation need to done for point-of-sale (PoS), UPI promotions and Bharat QR code.