Eight major banks have joined the Account Aggregator (AA) network, which allows them to share consumer bank data while also attracting new customers. To receive the benefits, you must consent to AA sharing your credit information if you are a customer of any of the major banks, including SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Indusind Federal, and IDFC First Bank.
Platform for Information Exchange
The Reserve Bank of India has licenced Account Aggregators to act as an intermediary or exchange platform for banks and institutions that share and use data from the system. The platform's job is to bring all of a customer's financial data together in one location and operate as an information custodian. Any bank, insurance firm, or mutual fund that shares data with AA, for example, will be able to access the data exclusively through the system. As a result, your bank or financial institution must be a member of one of the active AAs in the market.
There is no need for paperwork or a KYC.
The procedure of sharing data becomes simple once your bank or institution provider is registered, as the institution is connected to the AA system via APIs. You don't need to submit any paperwork for KYC if you need a new loan, want to acquire an insurance policy, or want to invest in a mutual fund, for example. All you have to do is give AA your permission to share your data with banks and organisations. The AA will digitally extract the information from your bank and send it to the bank or organisation where you are asking for a new loan or investment.
Protected and safe
If you're concerned that your data will be used or misused by anyone, the AA framework contains very rigorous data privacy requirements. From your bank to the institution you're asking for a new loan or any other business for a financial product, the data shared by the AA will be securely encrypted.
You have complete control over data sharing.
As a customer, you will have complete choice over the quantity of data you want to disclose on an AA platform, as well as the time period during which the data will be available for any bank or financial institution to access. You can also choose to transmit only loan information or only credit card information, for example. Other information intermediaries, such as a credit bureau, are used by the lending institution to obtain extra information on you.
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