What do we need to know About Account Aggregation?

India has revealed the RBI account aggregator (AA) network, a financial data-sharing platform that is going to bring about a new revolution in the banking and investment industry. This is believed to revolutionise lending and investment by granting millions of people more access to and control over their financial records and boosting the potential market for lenders and fintech firms. With the help of such an account aggregator, an individual will be able to have control of their private financial information, which is otherwise kept in silos. This is the first step towards introducing open banking in India and giving millions of clients the ability to securely and effectively access and exchange their financial data online across various organisations.

An introduction to account aggregation

The RBI account aggregator, introduced by the RBI, aims to increase the accessibility of financial data by establishing data intermediaries known as account aggregators (AA), who will gather and share the user’s financial information from a variety of entities that hold consumer data known as Financial Information Providers (FIPs) to a variety of entities that are requesting consumer data known as Financial Information Users (FIUs) after receiving the consumer’s consent. For instance, if a user applies for a loan, the lender (an FIU) will need access to the user’s prior financial statements, which are kept by the user’s bank (an FIP), to assess the user’s creditworthiness.

How does the RBI account aggregator enhance people’s financial life?

Consumers in India now must deal with a variety of difficulties related to the financial system, such as providing physically signed and scanned copies of bank statements, running around to notarize or stamp papers, or having to divulge your unique username and password in order to provide someone access to your financial history. All of these would be replaced by the account aggregator network’s straightforward, secure, mobile-based approach for accessing and sharing digital data. New service opportunities, such as new loan types, will result from this.

Which services can customers access through an account aggregation network of data sharing?

The two main services that will improve for a person are access to loans and access to money management. These days, a borrower must provide the lender with a number of documentation if they wish to obtain a small company or personal loan. These days, getting a loan and getting access to one takes a long time because of the laborious, manual process. In a similar vein, managing finances in the modern day is challenging due to the difficulty in analyzing data due to its dispersed storage across numerous sites. With the help of an account aggregator, a business will be able to rapidly and affordably access secure data that cannot be altered, expedite the loan application process, and thus enable a customer to obtain a loan.

What is the process of registration for the RBI account aggregator?

Each company that wishes to be registered as an NBFC-Account Aggregator must submit an application for registration to the bank’s Department of Regulation.

Before deciding whether to accept a registration application, the bank must be convinced that the following requirements have been met

  • The business has the resources and capability to provide clients with these services.
  • The company has a sufficient capital structure for operating as an account aggregator.
  • The company’s promoters are suitable and competent.
  • The general characteristics of the company’s management or prospective management do not jeopardize the interests of the general public.
  • The business has a solid information technology system in mind.
  • The company’s leverage ratio cannot be greater than seven.
  • The public interest will be served by the Account Aggregator receiving a certificate of registration to start or continue doing business in India.
  • Any further requirements that may from time to time be specified by the Bank and that, in the Bank’s opinion, must be met in order to ensure that the start or continuation of the activity in India won’t be detrimental to the public interest.
  • After determining that the requirements have been met, the bank may, subject to any conditions it sees right to impose, grant in-principle approval for registration as an account aggregator.
  • The bank’s in-principle approval is valid for a period of twelve months starting on the day it was granted.
  • The business must put the necessary technological foundation in place, sign all other legal documents necessary to be operational and certify its status as compliant with the conditions of the Bank’s in-principle approval within a year.

What are the responsibilities of an account aggregator?

On the basis of the customer’s express consent, an account aggregator shall render services to the customer.

  • An account aggregator must make sure that any services offered to a customer are supported by the necessary contracts or authorizations between the account aggregator, the client, and the financial information suppliers.
  • An account aggregator shall not support consumer transactions.
  • An account aggregator is responsible for providing the right tools for accurate customer identification.
  • An account aggregator may only disclose information to the customer to whom it pertains or to another user of financial information who has been given permission by the customer in line with the terms of the consent they have given.


Eight of India’s biggest banks have joined together to launch the RBI account aggregator system in the banking industry. Now, financial institutions can lend money out quickly and affordably with the functioning of account aggregators

With the help of platforms like Anumati, customers are put in charge of their data sharing, and the platform ensures that no one can get access to the target customer’s data without their consent.

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