The account aggregator ecosystem in the country is in a nascent stage and there is a need for its orderly growth, Reserve Bank of India’s deputy governor M Rajeshwar Rao said on Thursday.
Account Aggregators (AA) are entities that enable financial data sharing from Financial Information Providers (FIPs) to Financial Information Users (FIUs), based on the consent from the customers.
“The account aggregator ecosystem is still in a nascent stage of development. But given the sensitivity of the platform on account of the nature of data handled by it, it becomes imperative to ensure that the growth is orderly,” Rao said while speaking at iSPIRIT Foundation event.
AA acts as an intermediary and helps connect the customer to multiple Financial Information Providers (FIPs) through standardised API (Application Programming Interfaces).
Some of the account aggregators that have received approval from RBI include CAMSFinServ, Cookiejar Technologies Pvt Ltd, FinSec AA Solutions Pvt Ltd and NSEL Asset Data Ltd, among others. The deputy governor said as the business of account aggregators grow, it is feasible for different categories of financial institutions, under the jurisdiction of different financial regulators, to talk to one another over their respective technology based platforms.
“Seamless movement of data over different institutions with complete confidentiality will be the basic requirement for orderly growth and smooth functioning of the account aggregator framework,” he said.