RBI invites applications for self-regulatory body for account aggregators
New Delhi, Mar 12, 2025
Launched in September 2016, the account aggregator framework ensures secure financial data sharing; RBI said applicants must apply via the PRAVAAH portal by June 15
The Reserve Bank of India (RBI) has invited applications for a self-regulatory organisation (SRO) to oversee the Account Aggregator (AA) ecosystem. Introduced in September 2016, the account aggregator framework enables secure financial data sharing between different entities.
According to the RBI’s announcement, interested applicants must submit their proposals via the PRAVAAH portal by June 15. “The AA ecosystem is distinct in its complexity, involving the exchange of data among a diverse array of regulated entities (REs) operating under varied regulatory environments. This complexity necessitates frequent coordination among these REs to address various operational issues such as dispute resolution, standardised agreements and common services,” the RBI said in a press release.
The framework designates non-banking financial company-account aggregators (NBFC-AAs) as intermediaries between financial information providers (FIPs) and financial information users (FI-Us).
Multiple regulatory bodies oversee the entities within the AA ecosystem, including the RBI, the Securities and Exchange Board of India (Sebi), the Insurance Regulatory and Development Authority of India (Irdai), and the Pension Fund Regulatory and Development Authority of India. Additionally, the revenue department serves as the regulatory authority for the Goods and Services Tax Network in this framework.
“To support smoother adoption and stabilisation, the RBI has determined it is desirable to have a dedicated SRO for the AA ecosystem,” the regulator said.
The RBI’s Department of Regulation has introduced a “Framework for Recognising Self-Regulatory Organisation(s) for the Account Aggregator Ecosystem (SRO-AA),” outlining the eligibility criteria, governance structure, responsibilities, and key characteristics of the SRO-AA.
According to the central bank, the SRO-AA will function within the existing regulatory framework governing the AA ecosystem. Meanwhile, Reserve Bank Information Technology Private Limited (ReBIT) will continue to set and publish the necessary technical specifications.
The RBI has stated that its decision on the matter will be final unless a resubmission is requested.
In August last year, the central bank granted recognition to the Fintech Association for Consumer Empowerment (FACE) as a Self-Regulatory Organisation for the FinTech sector (SRO-FT).
Meanwhile, in February, PhonePe Group, the country’s largest mobile payments company, announced its decision to exit the account aggregator business. The firm chose to surrender its NBFC-AA licence, citing a strategic shift toward other business areas and a plan to collaborate with existing aggregators.
[The Business Standard]
