CBIC Notification No. 6/2024 dated 22 February 2024
In a recent development, the government has empowered the GST Network to share data concerning GST-registered businesses, subject to their consent, with the Reserve Bank of India’s (RBI’s) ‘Public Tech Platform for Frictionless Credit’. This significant move is poised to streamline the process of obtaining loans for entities by leveraging shared Goods and Services Tax (GST)-related information.
Vide Notification 6/2024-CT Dated 22 February 2024, issued by the Central Board of Indirect Taxes and Customs (CBIC), it was stated that the Central government, acting on the recommendations of the Council, has officially designated the ‘Public Tech Platform for Frictionless Credit’ as the system through which information can be shared via the common portal based on the consent of businesses. The notification also highlighted that financial service providers and various data service providers will be able to converge on the platform utilizing a standard and protocol-driven architecture.
As per the Notification, the ‘Public Tech Platform for Frictionless Credit’ has been developed by the RBI subsidiary Reserve Bank Innovation Hub. Its primary objective is to facilitate the seamless flow of essential information to lenders, thereby expediting the process of credit disbursal. The platform has been meticulously designed to cater to a vast ecosystem of credit operations, ensuring the digital access of information from diverse data sources.
This initiative marks a significant step towards enhancing the efficiency and accessibility of credit facilities for businesses. With the integration of the GST Network data into the RBI’s tech platform, businesses can expect a smoother and faster process when applying for loans. It also underscores the government’s commitment to leveraging technology for the benefit of businesses, promoting financial inclusion, and fostering a conducive environment for economic growth.
For businesses seeking prompt access to credit facilities, this collaboration between the GST Network and RBI’s innovative platform promises a more efficient and streamlined experience. Stay tuned for more updates on how this development unfolds and its impact on the business landscape.
To Download the CBIC Notification 6/2024-CT CLICK HERE
To Access the GSTN Advisory 624 Dated 21 February 2024 CLICK HERE
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