The Reserve Bank of India (RBI) has launched a framework to officially recognize a Self-Regulatory Organisation (SRO) for the Account Aggregator (AA) ecosystem. This initiative is all about making data exchange smoother, tackling operational issues, and ensuring compliance with different regulatory bodies. The expectation is that this will boost coordination, standardization, and the resolution of disputes within the AA framework.
Key Highlights
Objective
- To establish a dedicated SRO for the Account Aggregator (AA) ecosystem to streamline financial data exchange and resolve operational issues.
Background
- RBI introduced the AA framework in September 2016 to enable secure financial data sharing.
- August 2024: RBI recognised the Fintech Association for Consumer Empowerment as an SRO for the fintech sector.
Why an SRO for AAs?
The AA ecosystem is made up of various regulated entities that function across different financial sectors. Having a dedicated Self-Regulatory Organization (SRO) will assist in resolving disputes, creating standardized agreements, and providing common services to enhance coordination among these entities.
Application Process
- Interested parties must apply via the Pravaah portal before June 15, 2025.
- The RBI’s decision will be final unless a resubmission is requested.
Entities Involved in the AA Ecosystem
- Financial Information Providers (FIPs) and Financial Information Users (FIUs) interact through NBFC-Account Aggregators (NBFC-AAs).
- Regulated by RBI, SEBI, IRDAI, PFRDA, and the Union Revenue Department (GST Network regulator).
Technical Specifications
- The Reserve Bank Information Technology (ReBIT) will continue to frame and publish technical specifications.
