The recently introduced account aggregator system will help individuals and small businesses to get loans from banks in a hassle-free manner by digitally sharing financial data across institutions.
What is an Account Aggregator?
Account Aggregator (AA) is a type of entity regulated by RBI (with NBFC-AA license) that enables an individual to securely and digitally share information from one financial institution and with any other regulated financial institution in AA helps to share. Network. Data cannot be shared without the consent of the individual. There will be multiple account aggregators that an individual can choose from. The account aggregator replaces the lengthy terms and conditions form of ‘blank check’ acceptance with a fine-grained, step-by-step permission and control for each use of your data.
Account aggregator systems can make lending and money management much faster and cheaper.
Eight banks join AA network
The person’s bank only needs to be connected to the account aggregator network. There are already eight banks – Axis, ICICI, HDFC, IndusInd Bank, state Bank of India, Kotak Mahindra Bank, IDFC First Bank and Federal Bank.
How will the new account aggregator network improve the financial life of an average person?
India’s financial system today involves many hassles for consumers – sharing physical signed and scanned copies of bank statements, running around to get documents notarized or stamped, or giving their financial history to a third party. Sharing your personal username and password for The account aggregator network will replace all this with a simple, mobile-based, simple and secure digital data access and sharing process. This will create opportunities for new types of services — such as new types of loans.
Account Aggregators Approved
some of the account aggregator Those that have received approval from RBI include CAMSFinServ, Cookiejar Technologies Pvt Ltd, FinSec AA Solutions Pvt Ltd and NSEL Asset Data Ltd.
Can a consumer decide they don’t want to share data?
Yes. It is completely voluntary for consumers to register with AA. If the bank the subscriber is using has joined the network, a person can choose to register on AA, choose which accounts they want to link, and link their data to one of their accounts. Can share in a new lender or financial institution for a specific purpose. At the stage of giving ‘Consent’ through one of the Account Aggregators. A subscriber can decline the consent to share request at any time. If a consumer has accepted data sharing in a recurring manner over one period (eg during the loan term), it can also be revoked by the consumer at any subsequent time.
How can a customer get registered with AA?
You can register with AA through their app or website. AA will provide a handle (such as a username) that can be used during the consent process.
Today, there are four apps available for download (Finvu, OneMoney, CAMS Finserv, and NADL) that have operational licenses to be AAs. Three more have received in-principle approval from RBI (PhonePe, Yodlee, and Parfios) and are likely to launch apps soon.
What new services can customers access if their bank has joined the AA network of data sharing?
The two major services that will be improved for an individual are access to credit and access to wealth management.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.