RBI Enhances Access to Financial Information: Account Aggregators to Operate Across Platforms
The Reserve Bank of India (RBI) has announced the implementation of interoperability among account aggregators (AAs), allowing customers to share financial information seamlessly across various institutions. This initiative will enable users to access and share data from banks, mutual funds, insurance companies, and National Pension System (NPS) fund managers through any NBFC-Account Aggregator of their choice. The RBI aims to enhance customer convenience with this move, which was revealed during the central bank’s bi-monthly policy announcement.
Enhanced Consolidated Account Statements
With the new interoperability feature, customers will soon see a more comprehensive Consolidated Account Statement (CAS). This statement will include details from mutual funds, stocks, and fixed deposits, providing a unified view of their financial holdings. Demat account holders will benefit from seeing their demat holdings alongside bank deposit accounts in a single CAS. Customers without demat accounts will still have access to a consolidated view of their financial information through NBFC-AAs.
The RBI plans to implement these changes by December 31. The Account Aggregator framework, launched in September 2016, connects financial information providers with users, allowing for data sharing after customer consent. The ecosystem includes entities regulated by the RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority of India (PFRDAI).
Implications for Financial Transparency
The expanded CAS will serve a function similar to Form 26AS, which consolidates taxpayer financial transactions. According to Adhil Shetty, CEO of BankBazaar, the CAS will provide investors with a clear view of their securities holdings. Vivek Iyer, Partner and Financial Services Risk Advisory Leader at Grant Thornton Bharat, stated that the RBI’s move is crucial for advancing India’s open finance ecosystem.
Interoperability among account aggregators is expected to reduce customer friction, prevent platform lock-ins, and enhance data portability. This will allow customers to access and share their financial information more freely. The measures are anticipated to improve transparency and financial visibility for consumers, further promoting the adoption of India’s consent-based data-sharing framework.
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