Budget 2025 would play a key role in driving the country’s economic growth through enhanced credit access to the rural and underserved sectors of the economy.
The growth of the financial services sector is an integral part of India’s expanding economy, and this is why several experts have called for a better digital lending ecosystem to enhance credit access.
With the Union Budget presentation on February 1, the financial services sector remains under the spotlight. Several experts told IndiaToday.in that they will watch out for announcements such as a better digital lending ecosystem along with an increased focus on non-banking financial companies (NBFCs).
Firstly, experts have called for increased access to financial services, which would be crucial for accelerating economic growth. Yashoraj Tyagi, CEO of CASHe, said, “The lending sector expects major changes in the upcoming Union Budget. Increased credit fraud, limited access to customer protection tools, and cyber scams have temporarily disrupted the digital lending ecosystem.”
He added, “This year’s budget presents opportunities to introduce policies that can strengthen digital infrastructure and enhance access to financial services.”
Shikhar Aggarwal, Chairman of BLS E-Services, explained, “The Indian government has been actively promoting financial inclusion, especially in Tier 2 and 3 cities. These efforts aim to integrate underserved populations into the formal financial system, providing them access to essential financial services.”
Non-Banking Financial Companies (NBFCs) play an essential role in an economy as they fill the gap between the conventional banking system and the underserved sectors of the country. Thomas John Muthoot, Chairman of Muthoot Pappachan Group, noted, “Approve dedicated credit lines for NBFCs from banks to facilitate seamless digital lending to micro-retailers, addressing credit gaps in underserved sectors, and promoting financial inclusion.”
This would accelerate economic participation in rural areas, which would, in turn, contribute to the nation’s overall growth and development.
Experts have also called for adopting policies that support digital literacy and strengthen the nation’s digital financial ecosystem, thus creating a more effective and secure financial environment.
Dilip Modi, Founder and CEO of of Spice Money, said, “As we look forward to the Union Budget 2025-26, it is imperative to prioritise measures that strengthen the digital financial ecosystem, particularly in rural India, where initiatives like the Aadhaar-Enabled Payment System (AePS) and Bharat Connect have become lifelines for millions.”
