These banks joined him, how it will benefit customers

The recently introduced Account Aggregator system will help individuals and small businesses obtain hassle-free bank loans by digitally sharing financial data between institutions.

What is an account aggregator?

An Account Aggregator (AA) is a type of RBI regulated entity (with an NBFC-AA license) that helps a person securely and digitally access and share information from a financial institution with which they are has an account with any other regulated AA financial institution. network. Data cannot be shared without the consent of the individual. There will be many account aggregators from which an individual can choose. Account Aggregator replaces the long-term form and terms of acceptance of the “blank check” with granular, step-by-step authorization and control for every use of your data.

The Account Aggregator system can make lending and managing wealth much faster and cheaper.

Eight banks that have joined the AA network

The individual’s bank just needs to join the Account Aggregator network. Eight banks already have them: 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 involves many problems for consumers today: sharing signed and scanned physical copies of bank statements, running around to notify or stamp documents, or having to share your username and password. to communicate your financial history to a third party. The Account Aggregator network would replace all of this with a simple, mobile, simple and secure digital data access and sharing process. This will create opportunities for new types of services – for example new types of loans.

Account aggregators that have received approval

Some of the account aggregators that have received RBI approval include CAMSFinServ, Cookiejar Technologies Pvt Ltd, FinSec AA Solutions Pvt Ltd, and NSEL Asset Data Ltd, among others.

Can a consumer decide they don’t want to share data?

Yes. Registration with an AA is completely voluntary for consumers. If the bank the consumer uses has joined the network, a person can choose to register with an AA, choose the accounts they want to associate, and share their data from one of their accounts for specific purposes with a new one. lender or a new financial institution. at the “consent” stage via one of the account aggregators. A customer can refuse consent to share a request at any time. If a consumer has agreed to share data on a recurring basis over a period (eg during a loan period), it can also be revoked at any time later by the consumer.

How can a customer register with an AA?

You can register with an AA through their app or website. AA will provide an identifier (such as username) which can be used during the consent process.

Today, four apps are available for download (Finvu, OneMoney, CAMS Finserv and NADL) with operational licenses to be AA. Three more have received RBI approval in principle (PhonePe, Yodlee, and Perfios) and may be launching apps soon.

What new services can customers access if their bank has joined the AA data sharing network?

The two key services that will be improved for an individual are access to loans and access to money management.

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