Fintechs and the Future of India’s GST Ecosystem

As lenders and bankers find innovative ways of financing businesses, the Reserve Bank of India (RBI), the regulator, also plays catch up by introducing regulations to govern these innovative processes so that unfair practices and data misuse can be prevented along with balancing customer demand for better data management. The ever-increasing number of banking frauds clearly point to a gap between business innovations in financing and meticulous conformance to regulations consistently.

Digital solutions are rapidly capturing the large empty space that is created by paper based compliances in the BFS sector. These solutions adequately address the rising compliance management mandates. These are commonly known as Regulatory technology software, or RegTech, in Fintech parlance. These regtechs help companies in the BFS sector in managing and complying with regulatory protocols more efficiently. The technology helps complete legally mandated tasks faster at lower costs and with lesser errors. It also enables the compliance ecosystem to catch up in real-time as regulations multiply faster.

Role of Regtechs in the GST ecosystem

Until the introduction of GST in India, a large section of businesses was using pre-printed stationery and pen to raise invoices. Besides, small entrepreneurs generally rely on their accountants to understand the status…