Union Budget 2026–27 Expectations: Fintech & Cross-Border Payments Expectations from Spice Money and GlobalPay

By Dilip Modi, Founder & CEO, Spice Money – 

“As India accelerates its financial inclusion journey, the Union Budget should continue to prioritise the non-bank Business Correspondents ecosystem and rural fintechs that enable last-mile access to essential banking services. BCs are the backbone of assisted digital finance in Bharat, delivering critical services such as mATM transactions, AePS, cash-in and cash-out, and CASA access in regions where physical bank branches remain limited. Strengthening this network through better infrastructure support, digital enablement, and sustainable incentive structures will significantly deepen formal banking penetration. Rural fintechs have played a pivotal role in making everyday banking accessible and reliable for underserved communities. Enhanced connectivity in rural areas, and adoption of vernacular and voice-based interfaces can further drive usage and trust among first-time users. 

As fintech participation in core banking and payment services grows, there is also a need for clearer regulatory guidelines focused on operational transparency, standardised reporting, and consumer protection. Consistent disclosure norms, improved grievance redressal frameworks, and clear compliance expectations will help strengthen confidence across the ecosystem. A budget that balances inclusion, innovation, and governance will ensure that assisted digital finance continues to empower citizens while supporting sustainable growth in India’s rural economy.”

By Srikrishna Narasimhan, Whole-Time Director & CEO, GlobalPay

“India’s cross-border and forex payments landscape is seeing strong momentum, led by students pursuing education overseas, followed by Indian businesses expanding globally and rising outbound leisure travel. The Union Budget offers a timely opportunity to address the distinct needs of these segments through targeted regulatory and infrastructure measures.

While education remittances funded through loans are already exempt from TCS, extending a similar exemption to education-related payments made from a student’s own funds would recognise these as essential, non-discretionary expenses.

The increasing reliance on exclusive or semi-closed education payment platforms linked to specific universities raises concerns around fee opacity, pricing power, and limited consumer choice. Ensuring open access and fee neutrality in education remittances is therefore critical.

There is also a need to introduce enforceable safeguards aligned to product positioning and end-use. Where payment instruments are marketed for international education or travel, mandatory submission of relevant documentation should apply at onboarding or usage. Further, explicit purpose tagging across all cross-border instruments, mapped to FEMA categories, will enable regulatory harmonisation based on use case rather than instrument type. Such harmonisation will strengthen reporting integrity, curb misclassification, and support genuine student and traveller needs.

As outbound leisure travel grows, consistent policies and investments in interoperable cross-border infrastructure will be key to delivering transparent and affordable forex solutions and positioning India as a credible global payments hub.”