The Reserve Bank of India allowed a new kind of Non-Banking Finance Company (NBFC), which could act as an account aggregator to enable the common man to see all his accounts across financial institutions (FIs) in a common format. The idea of such an NBFC had emanated from the Financial Stability and Development Council (FSDC).
Who are account aggregators?
Account aggregators are entities that enable structured financial data sharing from financial information providers to financial information users, while maintaining a log of consent given (called ‘consent artefacts’), and providing the ability to revoke and manage consent. Any financial sector regulated entity currently offering these financial products and services is classified as ‘Financial Information Providers’. Any entity that is registered and regulated by any Financial Sector Regulator (across banking, mutual fund / equity investments, insurance, pensions — RBI, SEBI, IRDA, PFRDA is also classified as ‘Financial Information User’. Account aggregators are companies that collect and provide information on a customer’s financial assets, in a consolidated, organised and retrievable manner to the customer or any other person as per the instructions of the customer. The function as an account aggregator is to help citizens access and operate all their accounts across financial institutions in a common format.
An account aggregator will help, for example, seamless transfer of funds from say a fixed deposit held with one bank into a pension scheme. It includes:
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