A virtual pre-Budget conference was held on Thursday, chaired by Finance Minister Nirmala Sitharaman.
It was attended by representatives from the financial sector and capital markets. They submitted rafts of proposals that included the need, for flexibility when regulating NBFCs.
Other proposals vary from sustained credit flow to the corporate bond market.
Earlier that day the finance minister met experts from various fields and industrialists. Some of them suggested that the government must focus on maintaining an 8% plus growth rate.
Some even expected a double-digit growth rate in FY22.
Minister will consult with representatives of the services and trade sector on Friday morning. In the afternoon that same day, she will meet officials from industry bodies and experts on infrastructure and climate change.
The Finance Industry Development Council (FIDC) said that RBI push for greater harmonisation of all lending institutions will only do harm and is contrary to the very nature of NBFC.
Its nature is a bank for the people who cannot access formal banks.
But there is an active demand for an extension of attractive features like taxation and recovery which only the banks enjoy.
Experts say that government should continue to boost growth through reforms and bring in measures to ensure tax and policy stability. That will show the positive signs of a recovering economy.
For the Indian industries to be a part of the global value chain, the government should reform the import duty slab to a competitive level by three years.
By this, raw materials should be within the lowest or zero, 2.5-5% for intermediates and the rest in the present slab.
Vineet Agarwal, the president of Assocham, calls for the introduction of schemes that will reduce tax-related court cases in customs, telecom, mining, power and other sectors. Many cases when decided, will have a double due amount.
Raman Aggarwal, the director of FIDC, said that the retail loans extended by the NBFC to people and small institutions should not be treated on par with loans extended to corporates.
On November 12, the RBI released a circular which stated that the date of NPA classification of borrower accounts should apply to all loans, including retail ones. This should be done irrespective of the lender.
This will then reflect in the asset classification status of an account at calendar day end.
The economy is recovering from the pandemic, and the current fiscal is expected to grow at a range of 8.7% -10.5%. According to suggestions by stakeholders, a massive credit push by the government is needed for growth and expansion.
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