Budget 2026: Fintech Sector Seeks Regulatory Clarity, GST Relief and Stronger Innovation Push

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026, India’s fintech sector is calling for greater regulatory clarity, tax rationalisation and sustained policy continuity. With fintechs now central to payments, lending, wealth management and embedded finance, industry leaders say predictable regulation and capital efficiency are critical as global funding tightens and profitability becomes a priority. Strengthening digital public infrastructure and ensuring long-term sustainability are emerging as key expectations from the Budget.

The rapid adoption of digital payments, powered by UPI’s low-cost and interoperable architecture, has transformed everyday economic activity across sectors. While zero MDR has boosted inclusion and scale, fintech leaders argue that differentiated pricing for high-volume use cases could help sustain investments in infrastructure, cybersecurity and system resilience. As transaction volumes grow, reinforcing fraud prevention, payment reliability and user trust is increasingly seen as essential to the next phase of fintech growth.

Beyond payments, wealth-tech and MSME-focused fintechs are seeking targeted support through easier access to growth capital, GST rationalisation on tech-driven financial services, and incentives for innovation in AI, data analytics and cybersecurity. Continued backing for platforms like UPI, Account Aggregator and DigiLocker, along with simplified compliance and stronger credit guarantee mechanisms, could accelerate responsible fintech-led growth. Industry leaders also stress the importance of robust data protection under the DPDP Act to ensure a secure, inclusive and trusted financial ecosystem.

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