Entrepreneurs Cheer As Government Draws Plans To Back Blockchain Going into 2018, more banks are seeking to use this technology to transform parts of their business, especially to reduce frauds, he shared.

By Vanita D'souza

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock.com

The Union Budget 2018-19 had a list of polices dedicated to supporting the MSMEs of the country. A special one among them was the government's support of fintech in MSMEs lending space.

Finance Minister Arun Jaitley also hinted at upcoming initiatives the could groom the digital ecosystem of India.

In his last full-fledged budget under the present government's term, Jaitley said, "A group in the Ministry of Finance is examining the policy and institutional development measures needed for creating the right environment for Fintech companies to grow in India."

Decoding the statement, Rohit Lohia, Co-Founder and COO, CoinTribe says the announcement is the government's recognition of the sector's systemic.

"The sector will have a lot of expectations from the group - easing consent-based access to government or utility records of an individual or a business, increased formalization and registration of businesses, dematerialization of property records that can act as collateral, boosting of working capital financing through empowered TReDs," he added.

Presently, Indian fintech companies get a very limited support with respect to digital documentation and its acceptance, legally. Therefore, Bhavin Patel, Founder & CEO, LenDenClub feels if government takes required action in this direction as it will lead to optimum utilization of time and effort towards effective planning and execution of business models.

"Additionally, the government can also create a stringent legal structure around the recovery of defaulters' money, so as to enhance trust in the segment. Such moves will increase fintech growth and penetration in the country, multifold. Digital documentation & faster legal recovery resolution will definitely push P2P lending platforms to take their business to non-urban areas and village, boosting the overall growth of the segment," he said to Entrepreneur India.

Aye To Blockchain

While Jaitley refused to embrace cryptocurrency, he said the government was open to the idea of blockchain and was ready to explore the potential use cases.

Jesse Chenard, Co-Founder and CEO of MonetaGo believes 2018 will definitely see a rise in the scope of work in the said space wherein different industries may go for PoCs to test the efficiency of the blockchain technology in respective use cases.

Going into 2018, more banks are seeking to use this technology to transform parts of their business, especially to reduce frauds, he shared.

Beyond BFSI

Blockchain technology can be used across sect education, aviation, healthcare, infrastructure like roads and rails, among other segments. The technology has the capacity to reduce government's burden on the treasury by using it to attain funding and financing for micro to macro-projects in education, healthcare or infrastructure to begin with.

State Governments of Andhra Pradesh and Telangana have already embraced the possibilities of blockchain by testing it for land deals. Similarly, Maharashtra Chief Minister Devendra Fadnavis too welcomed the technology by saying it will reduce trust deficit.

Post the budget announcements, even Prime Minister Narendra Modi tweeted in support of blockchain in healthcare space.

"With blockchain healthcare applications, the quality of healthcare is predicted to rise, and the risks and costs are likely to go down. And as you probably know that data stored on blockchains can be shared in real time across a group of people or institutions." his tweet read.

XinFin's Atul Khekade pointed out that the large part of the budget focused on rural areas and upliftment of the less-privileged gestates of the society and we can achieve to bridge that gap using blockchain too – by eliminating intermediaries in farm supply chain and finance.

Blockchain at large will see a big role in the country in the coming days with the ability to transform every industry with more transparency, efficiency and high fraud prevention.

But the large question is - can the government bridge the needs of MSMEs, farmers and underprivileged section of the society with blockchain technology and witness some ground-level growth? Well, only time can tell!

Vanita D'souza

Former Senior Correspondent, Entrepreneur India

I am a Mumbai-based journalist and have worked with media companies like The Dollar Business Magazine, Business Standard, etc.While on the other side, I am an avid reader who is a travel freak and has accepted foodism as my religion.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Ex-NFTFN Co-founder Abhishek Gupta Unveils PlayPe for Real-Time Cricket Engagement

With a strong focus on compliance, user trust, and interactive match-time gameplay, it's set to launch on Android and iOS by September 2025.

Business News

IBM Replaced Hundreds of HR Workers With AI, According to Its CEO

IBM CEO Arvind Krishna said the move led to more hiring in other areas.

Technology

Companies Step Up Investments in AI, Sustainability to Stay Ahead of the Game

As enterprises are undergoing massive digital transformation, AI has become more pertinent than ever. But at the same time, companies are taking conscious efforts to ensure their tech initiatives are sustainable in nature

News and Trends

Gensol Engineering's Top Executives Resign Amid SEBI Probe

Meanwhile, Evera Cabs (Prakriti Mobility) has repossessed around 500 electric cabs previously operated by BluSmart. Although Uber was reportedly in talks to acquire BluSmart's fleet, the deal appears to have stalled.

News and Trends

Biryani Blues Raises USD 5 Mn from Yugadi Capital to Fuel Aggressive Expansion

Company's FY25 revenue stands at USD 10 million; valuation reaches USD 30 million