Introduction to Account Aggregators (AAs): Account Aggregators are RBI-authorized entities that operate as a type of NBFC. Their primary role is to securely and digitally collect and share customers’ financial information, with consent, across different financial institutions within the AA network.
RBI’s Oversight of AAs: The Reserve Bank of India (RBI) supervises AAs through a stringent set of circulars, master directions, and notifications, ensuring they comply with the necessary financial regulations.
Account Aggregators’ Role in Financial Inclusion: AAs are designed to resolve the issue of fragmented financial data which hampers the delivery of financial services. They play a crucial role in the financial inclusion narrative by streamlining the process of sharing financial information between institutions, thus facilitating quicker financial services.
Operational Dynamics of AAs: AAs function by retrieving financial data from one institution (the FIP) and transferring it to another (the FIU), with the explicit consent of the customer. This process is meant to be secure, efficient, and customer-centric.
Impact on the Financial Services Process: By enabling the easy flow of financial data, AAs can significantly reduce the time and complexity associated with loan processing and other financial services, potentially reducing customer attrition and benefiting banks and customers alike.
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