Joining the Account Aggregator Ecosystem as a Financial Information User

With the increasing need for efficient and effective financial information management, the Account Aggregator (AA) ecosystem has become a valuable tool for regulated entities. As per the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, such entities are classified as Financial Information Providers (FIP) or Financial Information Users (FI-U).
However, it has come to light that some eligible entities have only onboarded as Financial Information Users (FI-U) and are accessing financial information from other FIPs but failing to provide the financial information held by them. Therefore, to ensure optimal utilization of the AA ecosystem, regulated entities joining the ecosystem as FI-U must also join as FIP if they hold the required financial information and fall under the FIP definition.

Breaking down the concept

As per the Account Aggregator (AA) ecosystem, eligible entities holding financial information can either join as Financial Information Providers (FIPs) or Financial Information Users (FI-Us) based on their specific needs. FIPs are required to provide financial information to AA users, while FI-Us are only authorized to access financial information.
However, it has been observed that some entities have only onboarded as FI-Us, which has led to an imbalanced information exchange within the ecosystem. By accessing financial information from other FIPs without providing their own information, they are not contributing to the optimal utilization of the AA ecosystem.
In response to this challenge, the Reserve Bank of India (RBI) has made it mandatory for regulated entities joining the AA ecosystem as FI-Us to also join as FIP if they hold the specified financial information and fall under the definition of FIP.

Impact on the ecosystem

This decision will help to ensure efficient and optimum utilization of the AA ecosystem by promoting balanced information exchange among the participants. By facilitating complete and open financial data sharing, the ecosystem can achieve its full potential in improving the availability and accessibility of financial information for all stakeholders.

Ensuring Optimal Utilization of the AA Ecosystem

This decision by the RBI aims to promote a balanced exchange of information within the AA ecosystem. By requiring regulated entities to participate as both FI-Us and FIPs, the ecosystem can effectively utilize the financial data held by all participants. This will enhance the availability and accessibility of financial information for all stakeholders, leading to a more efficient and effective financial management system.

Modification of the Master Direction

In line with this decision, the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, has been modified to include this requirement. The RBI has provided clear guidelines for regulated entities onboarding the ecosystem as FI-U.

Conclusion

Joining the Account Aggregator (AA) ecosystem as a Financial Information User (FI-U) is now accompanied by the necessity to also join as a Financial Information Provider (FIP) if the entity holds the required financial information. This decision by the RBI ensures a balanced exchange of information within the ecosystem, contributing to its efficient and optimal utilization. Regulated entities must adhere to this requirement to enhance the availability and accessibility of financial information for all stakeholders.
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