Banks and Finance Firms Lay Out Budget 2026 Expectations

As India’s Union Budget 2026 approaches, the banking and financial services sector has outlined a series of expectations aimed at strengthening economic growth and improving financial stability. With the budget scheduled to be presented on February 1, industry leaders believe this fiscal roadmap will play a critical role in shaping credit expansion, digital innovation, and investor confidence.

One of the primary demands from banks and lenders is focused on credit reform and expansion. While India’s formal credit ecosystem has grown steadily in recent years, experts believe large sections of the population and business community remain underserved. Special emphasis has been placed on improving access to loans for micro, small and medium enterprises, rural borrowers, and first-time credit users.

Financial institutions are also seeking stronger digital lending frameworks. As technology reshapes banking services, lenders want policies that encourage innovation while ensuring customer protection. Clear regulations for digital lending platforms, data security, and fintech partnerships are viewed as essential to maintaining trust and efficiency in the system.

Another key expectation relates to support for small businesses and emerging entrepreneurs. Industry leaders have highlighted the need for tax incentives, expanded credit guarantee schemes, and infrastructure support that can help enterprises scale operations and generate employment.

Risk management and capital strengthening remain high on the agenda. With global markets facing uncertainty, banks are urging the government to maintain strong capital buffers and promote policies that enhance long-term resilience within the financial system.

Beyond these sector-specific demands, there is a broader appeal for measures that promote financial inclusion and literacy. Expanding banking access, encouraging responsible borrowing, and improving ease of doing business are seen as vital steps toward sustaining economic momentum.

As policymakers finalize the budget framework, the industry hopes the government will strike a balance between fiscal discipline and growth-oriented reforms. The decisions announced in Budget 2026 are expected to influence lending capacity, innovation, and India’s journey toward a stronger and more inclusive financial ecosystem.