Both business leaders and legislators have been paying close attention to the rise of fintech companies in Delhi-NCR, especially in Noida. Dr. Ganesh Natarajan, Chairman of 5F World and a member of the India FinTech Forum’s Advisory Committee, applauded recent efforts and stressed the importance of fintech within the larger finance industry for India’s economic future. He emphasized the value of digital lockers in promoting cooperative apps, which may help start-up financial businesses. One of the main concerns has been SMEs’ access to funding, with a focus on strong business models and innovative concepts. Similarly, India FinTech Forum’s strategy and policy committee emphasized the role that data infrastructure plays in promoting financial inclusion. He pointed out that adding fintech access to the digital lockers’ range of services might ease KYC procedure difficulties, particularly for MSMEs.

Furthermore, the suggested National Financial Infrastructure Registry has the potential to simplify loan availability by granting consent-based access to financial data. The RBI’s initiatives to encourage transparency in credit evaluation are in line with the integration of real-time credit information under this framework. Noida stands out as a centre for fintech innovation in this emerging market, with several enterprises providing financial services and financing solutions catered to the needs of both consumers and businesses. These changes highlight how crucial top fintech companies in Delhi are becoming to the region’s financial inclusion and economic expansion.

Will the Budget Address the Issues of Credit and Startup Capital?

1. Various credit guarantee programs have presented difficulties for younger enterprises trying to gain access in the Fintech lending industry. For example, the CGTMSE plan only allows loans with interest rates below 18%, which benefits NBFCs with cheap funding costs. Similarly, the CGMFU excludes newer NBFCs and is only available to NBFCs with AUMs more than 500 crore and a BBB+ grade. Although the budget includes funding for credit guarantee programmes, Mr. Mittal said that these obstacles limit the impact of these initiatives on financial inclusion by preventing nascent Fintech enterprises in Noida and Delhi, from benefiting.

2. The IFTA Committee also discussed his thoughts on the Union Budget 2023, highlighting the budget’s emphasis on Fintech and other sectors of rapid acceleration. The budget seeks to facilitate the growth of Fintech startup loans in Noida by increasing funding for Fintech-driven services, streamlining KYC, and expanding Aadhar, Digilocker, and UPI. Fintech companies in Delhi and Noida would also profit from tax breaks and the government’s intention to make India the most startup-friendly country under the proposed National Data Governance Policy.

3. Executive Committee Member of the India FinTech Forum, emphasized the significance of cooperation between banks, FinTechs, and regulators to improve the customer experience. He emphasized the necessity of Fintech projects in the areas of use cases, payment experiences, API standardization, and regulation. In line with the budget’s goal of accelerating Fintech momentum and helping leading Fintech companies in Delhi and Noida, he also pushed for the appointment of a Fintech Officer and the creation of a National Fintech Policy.

This budget prioritizes the following startup-friendly initiatives:

a. Simplifying KYC: A more tailored strategy will replace the current one-size-fits-all method.
b. DigiLocker and Aadhaar Address and Identity Updates: A new method will be developed to update citizen data using digital platforms.
c. Adding Fintech Support to DigiLocker: Documents from DigiLocker will now be able to support Fintech services.
d. Presenting Entity-based DigiLocker for Commercial Use: A dedicated DigiLocker service will be made available to charitable trusts, major corporations, and MSMEs.
e. Putting the National Data Governance Policy into Practice: This policy will guarantee privacy by enabling access to anonymous data.
f. Fostering the uptake of AI: Programs such as “Make AI in India” and “Make AI work for India” will facilitate the application of AI technology.
g. Establishing 5G laboratories: To develop applications including smart classrooms, precision farming, smart transportation systems, and healthcare applications, 100 labs will be set up in engineering schools.

To sum up, the Union Budget has prioritized fintech companies in India by enacting policies that would support their expansion and development. Fintech businesses in Delhi and Noida are set to grow quickly with the support of the government. In addition to aiding in their growth, these programs open the door for significant contributions to digital financial inclusion and general economic advancement. As these advantageous circumstances allow fintech lending companies in Delhi and Noida to flourish, they will be essential in changing the financial scene and becoming major actors in the country’s economic development.

Also Read: Embedded Finance Revolution: Fintech Startups Insights