The Good and Service Tax Network (GSTN) has been added by the Reserve Bank of India (RBI) to the framework for account aggregators as a source of financial data. The most recent action aims to make it easier for micro, small, and medium-sized businesses to obtain loans based on cash flow (MSMEs). For the purpose of providing returns for the goods and services tax, the department of revenue will be the GSTN’s regulator (GST).
The financial data will be contained in GST returns submitted in GSTR-1 and GSTR-3B. The framework for registering with and using an account aggregator framework in India was published by the RBI in 2016.
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In essence, an account aggregator makes it possible for people and financial institutions to share information. Thus, before offering a loan to a person or an organization, lenders can examine this data. The account aggregator platform has so far enabled 17 banks, 48 non-bank lenders, and about a billion accounts.