Digital push, new accounting rules: Will Budget 2017 be a paradigm shift for Indian banks? – Firstpost

The traditional expectations in a Budget for the banking sector have been financial service reforms, tax breaks, deduction for NPA provisioning, reduction in tax rates, liberalisation in the FDI policy, etc. The upcoming 2017 Budget clearly is, however, expected to be a departure from the norm – let us see how.

In the past few months, India has gone through the demonetisation exercise, which has given a clear indication that the country is moving towards a cashless economy, which will curb the menace of black money. Everyone agrees that demonetisation is only the first step in the process – the next steps are likely to be unveiled in the Budget. A two-pronged approach clearly needs to be adopted by the government.

Representational image. Reuters

For one, digital payments need to be incentivised – this can be done through policy changes, tax breaks for encouraging digital…

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