Coronavirus disease pandemic has left countries battling with uncertain times. As countries enforced strict lockdown to prevent the spread of the disease, India implemented one of its longest nationwide lockdown. The impact of which was felt on the financial services sector. With travel, transportation, hospitality, retail, IT, etc. being severely impacted, the sector is going to witness credit squeeze, possibly higher non-performing assets, lack of demand off-take and fear of lending by the bankers to sectors of the economy, such as, micro, small and medium enterprises.
While the Reserve Bank of India has been pro-active and taken some liquidity measures for the bankers, non-banking finance companies as a sector is in a spot due to its liquidity crisis. Going forward, all eyes will be keenly on the financial services sector to observe if they can facilitate in lifting the economy of the country.
This publication summarises key tax and regulatory changes related to the financial services sector, between October 2019 and March 2020.