BTL 711 - Account Aggregator (AA)

 

The Banking Tutor’s Lessons

BTL 711                                                                          06-10-2024

Account Aggregator (AA)

Account Aggregator (AA) network was introduced as a financial data-sharing system by Reserve Bank of India (RBI) in September 2016.

Account Aggregator (AA) is a Non-Bank Finance Company (NBFC) engaged in the business of providing the service of retrieving or collecting financial information pertaining to the customer.

No financial information of the customer is retrieved, shared or transferred by AA framework without the explicit consent of the customer. AA transfers data from one financial institution to another based on an individual's instruction and consent.

Registering with an AA is fully voluntary for consumers.

Account Aggregators (AA) use technology to assist  in simple and secure exchange of  data between financial institutions like banks, insurance agencies or mutual fund companies.

The main participants of the AA ecosystem are the Account Aggregator (AA), the Financial Information Provider (FIP) and the Financial Information User (FIU) working together to simplify the process of sharing data.

With AA, you can use your financial data to access a vast array of financial services for your personal or business needs.

Entities may enrol themselves on AA framework as Financial Information Provider (FIP) viz. banking company, NBFC, asset management company, depository, depository participant, insurance company, insurance repository, pension fund etc. and as Financial Information User (FIU) which is an entity registered with and regulated by any financial sector regulator.

Sekhar Pariti

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