Mumbai : Cygnet gets in-principle approval to act as NBFC account aggregator
Fintech firm Signet on Tuesday said it has received in-principle approval from the Reserve Bank of India (RBI) to act as a non-banking financial company (NBFC) account aggregator.
The account aggregator is one of the largest open financing data-sharing protocols regulated by the RBI. It allows consumers to share their financial data with various financial institutions securely and digitally instantly. Cygnet said in a statement that it allows financial institutions to quickly and easily access consumers’ consent-based financial data.
“The account aggregator license will allow us to participate in the transformational changes taking place in the financial sector. We have seen how UPI has transformed the payments ecosystem, similarly, account aggregator will be a game changer for digital lending and financial inclusion Neeraj Huthising, Director, Signet Account Aggregation Pvt Ltd said.
“Small and medium-sized businesses will get better credit facilities, while banks and other financial institutions will get an opportunity to expand their loan portfolios. RBI, SEBI, IRDAI and PFRDA are already part of the account aggregator ecosystem in the form of financial information. are in various stages of integration with Providers (FIPs). With banks and financial institutions linking GSTN as a FIP, it will play a vital role in bringing the flow-based credit facility to the otherwise under-served SME sector, Huthising said.
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