More than 1.1 billion bank accounts are now eligible to share data on the Reserve Bank of India’s regulated data sharing system, the account aggregator (AA) framework, and around 3.8 million users have successfully shared data via the platform, said the Economic Survey 2023 that was tabled by Finance Minister Nirmala Sitharaman on January 31.
“With 23 Banks onboarded to the Account Aggregator framework, more than 1.1 billion bank accounts are eligible to share data on AA…3.3 million users have linked their accounts to the AA framework out of which 3.28 million users successfully shared data via AA,” the Economic Survey said.
The Account Aggregator (AA) is a global techno-legal framework that enables individuals to share their financial data quickly and securely, with their consent, with any regulated third-party financial institution of their choice.
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While the AA framework was released by the RBI back in 2016, the buzz around this has been growing louder.
The AA framework is currently live across over 110 crore of bank accounts, the survey noted.
Highlighting the benefits of introducing AA framework on MSMEs, the survey said that onboarding GSTN (Goods and Services Tax Network) as a financial information provider on the AA platform will open up avenues for access to credit for MSMEs.
The AA ecosystem includes Financial Information Providers (FIPs) such as banks, AMCs, pension funds etc., and Financial Information Users (FIU), entities that consume this data. FIUs, again, can be a bank giving out a loan, an insurance provider or a wealth manager, among others.
FIUs and FIPs must be registered with and regulated by any of the four regulators – RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA).
“As on 31st December 2022, 27 Financial Institutions have gone live as FIPs, including all 12 PSBs, 10 Private Sector Banks, 1 Small Finance Bank, and 4 Life Insurance Companies,” the survey said.
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