Key things in the BFSI list this year included a) a dedicated refinance window on the lines of NHB for the NBFC sector; and b) alignment of long-term capital gains tax with fixed deposits to encourage deposit mobilisation.
Finance Industry Development Council CEO Raman Aggarwal underlined the need for a dedicated refinance window for NBFCs. This, he said, will ensure a smooth and sustainable flow of funds. Money raised via this mechanism may be exclusively used to finance MSMEs and priority sectors, he added.
Aggarwal told news agency PTI after the FM meeting that the industry is also asking for some tweaking in the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, which he said will benefit NBFCs with regard to debt recovery.
As of now, the SARFAESI Act limit in this regard is Rs 20 lakh. The industry wants it reduced so that smaller NBFC players can be brought into the ambit as well. FIDC is making a case for reducing this limit to Rs 1 lakh (from the present Rs 20 lakh), PTI reported.
Another key point in the wish list was the removal of TDS on non-individual borrowers as “there is no extra revenue generated from this provision”. One of the recommendations pertained to education loans, with the industry seeking a notification for NBFCs for deduction in taxable income under section 80E on education loan interest.At the meeting with Sitharaman, representatives from the banking sector underlined the need to align long-term capital gains tax with fixed deposits, PTI reported citing sources. Such a move, industry people said, will encourage deposit mobilisation.
According to banking industry representatives, income tax is levied on return generated from term deposits, which discourages people from putting their savings in FDs.
Union Minister of State for Finance Pankaj Chaudhary, Secretary of the Department of Economic Affairs Anuradha Thakur, Chief Economic Adviser V Anantha Nageswaran and other senior officials from the Ministry of Finance were also present in the meeting.
This year’s will be Nirmala Sitharaman‘s ninth budget. Budget 2026-27 comes in a difficult backdrop of major geopolitical upheavals and Trump’s tariff blow on India. In the coming financial year, India will be staring at the issues of boosting demand, job creation and putting the economy on a sustained 8 per cent-plus growth path.
According to government projections, India’s economy is likely to grow between 6.3-6.8 per cent during the current fiscal year.