Budget 2024 for Financial Services Sector: Expectations, Impact, Past 5 Years Union Budget Declaration & Highlights

Financial Services Sector

Development programmes, in the last ten years, have targeted each and every household and individual, through ‘housing for all’, ‘har ghar jal’, electricity for 3 all, cooking gas for all, bank accounts and financial services for all, in record time.
GIFT IFSC and the unified regulatory authority, IFSCA are creating a robust gateway for global capital and financial services for the economy.
For meeting the investment needs our Government will prepare the financial sector in terms of size, capacity, skills and regulatory framework.
Financial assistance will be provided for procurement of biomass aggregation machinery to support collection.

Who Got What

Financial Services Sector

Financial Services Sector

Financial Services Sector

In Budget 2021, for NBFCs holding assets worth at least Rs. 100 crores, there's a proposal to reduce the minimum loan size eligible for debt recovery under the SARFAESI Act from Rs. 50 lakh to Rs. 20 lakh.

Financial Services Sector

The NBFCs eligibility limit for debt recovery was announced to be reduced from Rs. 500 crore to Rs 100 crore asset size and Rs 1 crore to Rs 50 lakh loan size.
The announcement declared that NBFCs are now notified to provide invoice financing to MSMEs through TReDS.
A Partial Credit Guarantee scheme was announced for the NBFCs formulated post the Union budget 2019-20 to address their liquidity constraints.

Financial Services Sector

While nothing substantial was announced in the interim budget, the Union Budget (July 2019) announced enhanced liquidity access for the sector.
The government revealed its plan to offer state-run banks a one-time 6-month partial guarantee of Rs 1 lakh crore. This guarantee aims to facilitate the purchase of consolidated high-rated pooled assets from financially sound NBFCs. It is designed to cover their initial loss of up to 10 percent.