Budget reaction: Digital Banking

1 Feb 2022 , 06:44 PM

“This budget, in some sense, has recognized the involvement of millennials in the economy today. From bringing crypto under the government’s regulatory ambit (with the 30% tax rate applicable to digital transfers) to introducing provisions to improve ease of doing business, this year’s Budget seems to have put the millennial user in a position of responsibility, while facilitating the carrying out of this responsibility. It’s also encouraging to see the support for digital payments will continue. We see this as a benefit that will be passed on to millennial consumers who will only get better with their finances this year with the help of more services built on the back of this system.

Pulling back a bit, the idea of having 75 digital banking units in 75 districts to start with, is a remarkable commemoration of our 75th year of Independence. This, coupled with the fact that digital payments will continue to see the same incentives as we did last year, is promising for neo-banks and the possibility of banking licenses”

The author of this article is Mr. Sumit Gwalani, Co-Founder, Fi

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com