Unlocking Data Flow: GST Empowers Account Aggregators

New Data-Sharing Framework: The Central Government, in accordance with CGST Act and IGST Act, introduces a data-sharing framework through the notification of "Account Aggregator."

Legal Authority Activation: Empowered by Section 158A of CGST Act and Section 20 of IGST Act, this move authorizes the common portal to share information with designated Account Aggregators.

Consent-Based Sharing: Information sharing with Account Aggregators is contingent on user consent, aligning with principles of data privacy and individual choice.

Operational Commencement: The notification is set to become operational starting from October 1, 2023, marking a significant milestone in data-sharing practices.

Defining "Account Aggregator": The notification clarifies "Account Aggregator" as a non-financial banking company, adhering to RBI policy directions and defined as per the NBFC - Account Aggregator Directions, 2016.

Reserve Bank of India Involvement: The involvement of the Reserve Bank of India adds a layer of regulatory oversight to ensure compliance with established norms.

Facilitating Financial Data Flow: This strategic move aims to facilitate secure and regulated flow of financial data, promoting transparency and efficiency in the financial ecosystem.