All things Fintech in Nirmala Sitharaman’s Budget 2021

Feb 1, 2021

By: Sanchita Dash

Nirmala Sitharaman kept it simple for India’s startups in the Budget 2021

Except making way for one-person companies, tax holidays, startups found themselves in the lonely corner of the budget announcements.

Credit: BCCL

But fintech definitely got an approval in Budget 2021

Digital payments and financial services found special mention in Sitharaman’s speech.

Credit: BCCL

Government to support a world-class fintech hub

It will be set up at the Gujarat International Finance Tec (GIFT) City.

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The Budget allocated ₹1,500 crore as incentives for digital payments

This will boost digital payment infrastructure and a cashless economy.

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Consumers are now incentivized to go cashless, said Kunal Shah of CRED

“We are in the very early days of penetration of credit, insurance… most financial services,” he said.

Credit: CRED

‘Clear support,’ said Shah

“It shows the intent of the government to consistently invest in digital rails,” he said.

Credit: BCCL

2020 saw 80 per cent increase in digital payments

“The government understandably focussed on capitalising on this momentum and incentivising adoption of digital payments for the year ahead,” said Harshil Mathur of Razorpay.

Credit: Razorpay

Tech bodies like NASSCOM too welcomed the move

“At NASSCOM, we have been emphasizing the importance of India as the hub for digital talent and innovation and are glad to see increased focus on innovation and skilling.”

Credit: BCCL

Check out Business Insider’s coverage of Budget 2021

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