Indian central bank's plan for account aggregators to eliminate user need for multiple accounts
The Reserve Bank of India's plan for interoperability among account aggregators (AAs) will remove the need for users to open multiple accounts with different providers. The change aims to improve the customer experience in managing financial data.
The Reserve Bank of India (RBI) is preparing a significant shift in financial data management by enabling interoperability among Account Aggregators (AAs). The new framework is slated for full implementation by December 31, 2026, aiming to eliminate the requirement for users to select an AA based on its specific banking or financial institution connections.
BG Mahesh, CEO of Sahamati, the RBI-recognized self-regulatory organization for the AA ecosystem, emphasized that the fundamental promise of interoperability is enhanced user freedom. "Customers should not have to choose an account aggregator based on which institutions it happens to be connected to," Mahesh stated.
Account Aggregators are RBI-licensed NBFCs acting as consent-based data sharing bridges between Financial Information Providers (FIPs) like banks, and Financial Information Users (FIUs) such as lenders and insurance companies. The current system has presented challenges, with financial institutions facing lengthy onboarding processes for new AAs, despite quick technical integration.
Interoperability is expected to shift focus from institution-centric connectivity to customer-centric portability. This will allow users to choose their preferred AA app interface, grant consent, and have the underlying infrastructure handle the technical connections. Sahamati believes this transformation can establish AAs as a foundational layer of India's digital financial infrastructure, with competition moving towards customer experience, trust, and innovation rather than just technical links.
While the precise technical implementation, such as whether every FIP connects to every AA or if requests are routed between AAs, remains a design choice, the objective is seamless access to financial information. Clear accountability for errors or data incidents will also be defined. The RBI's endeavor aims to foster a more consumer-friendly and efficient digital financial environment in India.