SEBI will soon join the AA framework: Buch
SEBI will soon join the Account Aggregator (AA) framework, according to its chief Madhabi Puri Buch.
Buch observed that the framework is in the implementation phase during which it exchanges data and API (Application Programming Interface) formats with the market participants it regulates. Thus, all of the deposit and mutual fund systems will soon be online on the AA framework.
An account aggregator is a non-bank financial company (NBFC), which retrieves or collects financial information (including bank deposits, stocks, bonds, mutual fund shares, insurance policies) from a client and consolidates, organizes and presents that information to the client or other user of financial information (an entity registered with and regulated by a financial industry regulator).
Eliminate paper essays
According to RBI, an AA can provide services to a client based on the client’s express consent. Financial data transfer and response should occur in real time. “The AA framework assists in the decision-making required for the provision of various financial services – lending, loan monitoring, wealth management, personal finance management, etc., – by eliminating paper trails.”…More , AA can facilitate access to financial services and credit to previously underserved and unserved segments by reducing information asymmetry,” RBI Deputy Governor Mr. Rajeshwar Rao had said in a speech. in September 2021.
The framework for AA was released by RBI in September 2016 with the aim of facilitating the aggregation of all of an individual’s financial assets.
According to a 2020 Niti Aayog paper, just as the launch of UPI (Unified Payments Interface) irreversibly transformed the world of digital payments in India, the RBI-driven AA model is expected to transform how financial services are delivered through a single architecture for consent. cloud-based data sharing. “In the AA model, individuals can for the first time seamlessly share their financial data between banks, insurers, investors, tax collectors and pension funds in a safe, secure and consented way. This has the power to transform the availability and affordability of financial products,” according to the document.
April 30, 2022