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Participating in the account aggregator framework launched on Thursday are four account aggregators, eight banks, and the government’s Goods and Services Tax network.
The framework, which has been discussed since 2016, will be available to all customers. It has been in the testing stage for some time.
The AA framework allows customers to access a variety of financial services from multiple service providers on a single portal. This framework works with a consent architecture that allows consumers to choose which financial data to share with whom. With this consent, service providers can use it to reduce the time and friction associated with offering financial products.
At an online event organized to launch an account aggregator, Reserve Bank of India Vice President M Rajeshwar Rao said the framework would help improve the availability of financial services while eliminating paper trails. I did.
“The business turmoil caused by the Covid-19 pandemic has exacerbated domestic credit inequality. This credit inequality can further delay the credit approval process. Account aggregators act as intermediaries here. , The borrower. “
Lao said the framework could help reduce compliance costs for SMEs and take advantage of faster credit approvals.
In July, Bloomberg Quint reported that at least four banks, including HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank, began testing the framework by providing financial services to a limited number of customers. bottom. Sahamati said in a statement that four more banks (State Bank of India, Federal Bank, Kotak Mahindra Bank and IDFC First Bank) will soon be operational.
Sahamati is a group working to popularize the account aggregator framework among financial service providers and users.
Apart from the banks listed above, Bajaj Finance Ltd. Non-bank lenders such as and DMI Finance also participate in the network.
In a statement, Sahamati said HDFC Bank and Axis Bank are using account aggregators for car loans, Lending Kart is using them for MSME loans, and IndusInd Bank is using them for personal financial management.
Nandan Nilekani, Non-Executive Chairman of Infosys, said: Nilekani has also helped develop the account aggregator framework.
According to Nilekani, as the ecosystem evolves further, the account aggregator framework could be extended to provide better healthcare to users.
Finvu, OneMoney, NESL, and CAMS Finserv are already functioning as account aggregators. Three more companies, PhonePe, Perfios and Yodlee, have received principle approval from the RBI.
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