Pre-budget expectation survey - Banking, Financial Services & Insurance Sector

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Grant Thornton Bharat’s pre-budget expectations survey for BFSI sector had interesting results. More than 75% of the respondents felt that the Budget 2022 should focus on the following:

1. Green energy should be included in the definition of priority sector
2. Data Privacy Bill should be pushed for finalisation
3. Public Credit Registry initiative should be prioritised
4. Increased regulatory focus around cryptocurrency and non-fungible tokens (NFTs)
5. Harmonisation of tax and regulatory incentives for alternate investment funds (AIFs) between the Domestic Tariff Area and Gujarat International Finance Tec-City (GIFT City)

Opinion was divided on foreign bank tax reduction, differential bank licences and extension of tax incentives on interest income for foreign portfolio investors (FPIs).

The respondents also voted for fiscal stimulus measures to mitigate damages from the ongoing COVID-19 pandemic, but voted against moratoriums to be provided by the banking system, which reflects an underlying recovery sentiment.