NBFCs, fintech companies urge FM Sitharaman to enhance lending facilities

NBFCs and fintech players have urged Sitharaman to enhance the lending facilities by three to four years

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman | File

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.

Also Read

UBS fund pursues $400 million stake in SoftBank-backed Paytm: Report

Cred raises $81 million funding, undertakes $1.2 million buyback plan

Google removes personal loan apps violating user safety policies

Portfolio outstanding of fintech companies grew 92% in 2019: Report

Fintech company BharatPe aims to become a bank for small merchants

India plans foreign investment rule changes that could hit Amazon: Report

Kerala plans to set up dedicated VC fund, open govt market for startups

Budget 2021: Special window for big-ticket foreign investments likely

East Delhi Municipal Corporation panel rejects new taxes proposed in budget

Raise tax deduction limit under Section 80D in Budget: Non-life insurers

"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.

First Published: Jan 19 2021 | 4:15 PM IST

Explore News