The Reserve Bank of India (RBI) has included the Good and Service Tax Network (GSTN) as a financial information provider under the account aggregator framework. The latest move is aimed at facilitating a cash flow-based lending to micro, small and medium-sized enterprises (MSMEs). The department of revenue will be the regulator of the GSTN for furnishing returns on the goods and services tax (GST).
GST returns filed in GSTR-1 and GSTR-3B will be the financial information. In 2016, the RBI released the framework for registration and operation of an account aggregator framework in India.
In essence, an account aggregator enables the sharing of data between individuals and financial institutions. Lenders can thereby review this information before providing a loan to an individual or an entity. So far, around a billion accounts, 17 banks, and 48 non-bank lenders have been enabled on the account aggregator framework.