Banking Experts Predict 2024 Union Budget Will Prioritize Enhancement of Digital and Rural Infrastructure.

Moneycontrol recently held a discussion with top representatives from the banking industry to gather their insights on what the upcoming interim budget may entail. The general consensus was that the budget would focus on boosting rural and digital infrastructure in order to achieve the goal of becoming a $5-trillion economy.

Amit Mohan, president of logistics and infrastructure at Kotak Mahindra Bank, and director of Kotak Mahindra Prime, stated that investment in infrastructure would continue to be a priority in order to achieve the desired economic growth. He also highlighted the importance of rural and digital infrastructure, stating that India’s leadership in the payments sector has caught the attention of the world.

The number of transactions on the unified payments interface (UPI) platform crossed 100 billion in 2023, a 60% increase from the previous year. This growth is a testament to India’s strong digital infrastructure.

S Krishnan, managing director and CEO of Tamilnad Mercantile Bank, emphasized the need for government spending on rural development. He also predicted an increase in the annual amount of Rs 6,000 being paid to farmers through the PM-KISAN scheme.

Indrani Pan, chief economist at Yes Bank, echoed the sentiment that rural development would remain a key focus in the budget. She also highlighted the importance of addressing income inequality between rural and urban areas.

Vinod A N, general manager and head of treasury at South Indian Bank, emphasized the importance of digital infrastructure from a banking perspective. He stated that banks would need to increase their budget for digital technology in order to compete with fintech companies.

In terms of market expectations, the focus would be on the government’s gross and net borrowings. The extent to which infrastructure and capital expenses will be prioritized in the budget will also be closely watched. Overall, the budget is expected to lay the foundation for future economic growth and development.  

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