Framework

This came in order to facilitate cash flow-based lending to MSMEs (Micro, Small and Medium Enterprises). Banks, non-banking financial companies, asset management companies, depository, depository participants, insurance companies and pension funds forms part of the list

The Reserve Bank of India said the Goods and Services Tax Network (GSTN) now forms part of the list of financial information providers under the Account Aggregator framework in order to facilitate cash flow-based lending to MSMEs (Micro, Small and Medium Enterprises), on 23 November.

An Account Aggregator (AA) is a type of RBI-regulated entity (with an NBFC-AA license) which allows an individual to gain access securely and digitally and share the information from their existing account on one financial institution with any other regulated financial institution in the AA network.

The apex bank in a circular said, “Department of Revenue shall be the regulator of GSTN for this specific purpose and Goods and Services Tax (GST) Returns, viz. Form GSTR-1 and Form GSTR-3B, shall be the financial information.”

Banks, non-banking financial companies, asset management companies, depository, depository participants, insurance companies and pension funds forms part of the list as the financial information providers.

GSTN being the technology backbone of GST has 1.40 crore registered taxpayers till date.