Bringing credit cards under TCS will ensure a level playing field with other payment instruments, prevent misuse: Swapnil Bhaskar, Chief of Strategy, Niyo
FinTech BizNews Service
Mumbai, July 17, 2024: Niyo, India’s leading banking fintech, has introduced unique "travel banking" for Indian passport holders.
Swapnil Bhaskar, Chief of Strategy, Niyo, has shared important pre-budget expectations:
To alleviate financial strain on students and retail travelers and boost global business, Niyo is expecting a reduction in TCS from 20% to 1% (at par with the crypto industry) on international transactions above the threshold in the upcoming budget. The threshold also needs to increase to at least INR 10 lakhs. Bringing credit cards under TCS will ensure a level playing field with other payment instruments, provide consistent regulatory oversight, enhance transparency, prevent misuse, and align credit card usage with other forms of international remittances for balanced financial governance. Issuing digital banking licenses aims to enhance financial inclusion, foster innovation, streamline banking operations, leverage technology for better customer experiences, reduce operational costs, and align with the government's push towards a digital economy. Additionally, increasing the LRS limit to $500k, considering inflation and the last revision in 2015, will benefit cross-border transactions. Introducing a small MDR on UPI P2M large merchant transactions will cover operational costs, ensure the sustainability of UPI services, support continued innovation, and maintain a robust payment infrastructure while balancing merchant and consumer interests. Furthermore, implementing special policies to promote credit on UPI will increase convenience, including incentives for credit providers, streamlined credit approval processes, and partnerships with fintech firms, fostering a dynamic and accessible credit ecosystem within the UPI framework.
