INDIA UNION BUDGET 2021-22: Proposals For Banking, Financial Services And Insurance Sector

Budget 2021 was announced amidst extraordinary circumstances that have had a global impact over the last few months. In continuation to several proposals announced in 2020 to keep India afloat during the lockdown and thereafter, the Budget announcements revolved around six pillars for reviving the Indian economy – (I) Health and Wellbeing; (II) Physical and Financial Capital and Infrastructure; (III) Inclusive Development for Aspirational India; (IV) Reinvigorating Human Capital; (V) Innovation and R&D and (VI) Minimum Government and Maximum Governance.

Gaining renewed confidence of investors and taxpayers, the Budget did not increase income-tax rates or introduce any new levies. The announcements continued to reflect the Indian Government’s core focus on investment in infrastructure, resolution of distressed assets, ease of doing business and an Atmanirbhar Bharat. There were notable announcements aimed at encouraging more businesses and investor groups to enter GIFT City IFSC and foreign inflows including attracting sovereign/ pension funds to invest in India.

We have captured some of the key policy announcements and tax changes proposed in the Budget which would be of relevance to the Banking, Financial Services and Insurance Sector.

We hope you find them useful and insightful.