• Notification Date: 26-11-2022
• Notification No: N/A

RBI to bring GSTN under Account Aggregator

The Reserve Bank of India (RBI) is about to include the Goods and Services Tax Network (GSTN) as a financial information provider under the account aggregator framework. This move has been taken with the aim of facilitating a cash flow-based lending to micro, small and medium-sized enterprises (MSMEs). The responsibility of regulating the GSTN for furnishing returns on the goods and services tax (GST) will be administered by department of revenue.

The financial information will be drawn from GST returns filed in GSTR-1 and GSTR-3B. Back in 2016, RBI released the framework which was to be followed for registration and operation of an account aggregator framework in India.

In a nutshell, the key role of an account aggregator is that it enables the sharing of data between individuals and financial institutions. As a result, the lenders will be able to review this information before providing a loan to any individual or entity. Till date, the RBI has enabled around a billion accounts, 17 banks, and 48 non-bank lenders on the account aggregator framework.