The Union Budget 2019 has come across as all-inclusive, seeking to boost infrastructure and foreign investment, and at the same time giving impetus to a digital economy. The government has announced no fee on merchants on card transaction in order to encourage all merchants to accept card payments. Further 2% TDS has been proposed on cash withdrawals of above 1cr.
This move will boost digital transactions in the country. For the insurance sector, the government proposed a100% FDI for insurance intermediaries, thereby making India a more attractive destination for FDI. This is a positive move for the industry, and may help better penetration of insurance products.
- Tarun Chugh, Managing Director & CEO, Bajaj Allianz Life