NBFCs and fintechs urge FM Nirmala Sitharaman to improve lending facilities

NEW DELHI : Non-bank financial corporations (NBFC) and fintech players urged Finance Minister Nirmala Sitharaman to improve three to four year loan facilities, which were announced and extended by the Reserve Bank of India (RBI) during the Covid-19 lockdown.

“As the Prime Minister has expressed, it is necessary to relaunch economic growth. It requires big efforts for financial inclusion, including an increase in lending, ”said Harsh Kumar Bhanwala, Executive Chairman of Capital India.

Banks and capital markets play an important role, but NBFCs – whether microfinance or otherwise – also play an important role in lending to small and medium enterprises. They serve in areas where banks are not accessible, Bhanwala said.

“Second, we are asking for a separate window from the refinancing entities for these small and medium NBFCs so that an assured line is available to them for all types of accounts.”

Bhanwala said section 194 of the Income Tax Act grants exemptions to banks for withholding tax deduction. Such a facility should also be extended to NBFCs as 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 expect the government to continue to promote financial inclusion to the last point in rural India. An incentive must be made for point of sale (PoS), UPI promotions and the Bharat QR code. “

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