24.02.2024: GSTN to share data with RBI’s frictionless credit platform

The government has permitted GST Network to share data about GST-registered businesses, based on their consent, with the Reserve Bank's ‘Public Tech Platform for Frictionless Credit'. The move will help entities get loans faster on the basis of shared Goods and Services Tax (GST)-related information.

The platform, created by the Reserve Bank of India (RBI) subsidiary Reserve Bank Innovation Hub, is intended to enable seamless flow of necessary information to lenders to help in disbursing credit.

In a notification, the Central Board of Indirect Taxes and Customs (CBIC) has said “the Central Government, on the recommendation of the Council, notifies ‘Public Tech Platform for Frictionless Credit' as the system with which information may be shared by the common portal based on consent…”.

The platform has been developed for the operation of a large ecosystem of credit, to ensure access of information from various data sources digitally.

The financial service providers and multiple data service providers can converge on the platform using standard and protocol driven architecture, the notification said.

“This arrangement ensures that borrowers cannot withhold any transactional information provided to lenders or the government portal. It enhances credit efficiency by minimising costs and the time required for processing.

Source: The Economic Times 

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