Union Budget 2026: Bridging The Gap Between Digital India And Real Financial Inclusion

Budget 2026 may link Digital India with real financial inclusion by boosting DPI, cash-flow-based lending, MSME credit access, and fintech-friendly policies.

Written By : ABP Live News | Updated at : 28 Jan 2026 02:44 PM (IST)

Rethinking MSME Credit In The Age Of Digital India

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Budget 2026 is expected to strengthen Digital Public Infrastructure (DPI), building on the success of India Stack to improve access to formal credit and reduce onboarding costs. (Image Source: freepik)

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Industry stakeholders are seeking a streamlined, centralised Digital KYC system to make lending faster, cheaper, and more inclusive across platforms. (Image Source: freepik)

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With over 112.34 million accounts linked under the Account Aggregator framework, the government is poised to enable loans based on real-time cash flow instead of physical collateral. (Image Source: freepik)

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Cash-flow-based lending could benefit salaried individuals and small business owners who lack traditional assets but have stable income patterns. (Image Source: Canva)

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Despite tech progress, MSMEs still face a credit gap of nearly ₹25.8 lakh crore, highlighting the need for lower-cost capital for digital lenders. The industry anticipates enhanced Priority Sector Lending (PSL) measures to improve liquidity and allow lenders to offer more affordable loans. (Image Source: freepik)

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With MSMEs contributing about 30% to India’s GDP, Budget 2026 may expand CGTMSE coverage beyond ₹10 crore and simplify claim processes. Clarity on FLDG norms and GST relief for fintechs could boost bank–fintech collaboration and help credit reach Tier 2 and Tier 3 entrepreneurs. (Image Source: freepik)