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Tuesday, July 1, 2025

Account Aggregator: India’s modern digital innovation

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Taking leaps in the world of digital innovations, India, back in 2021, had introduced the Account Aggregator (AA) network. AA is a financial data-sharing system, introduced by the RBI, which has made financial data more accessible, and it does so by creating intermediaries which collect and share financial data from entities that store the consumer data to the entities that request consumer data. The AA system can revolutionize investing and credit in the country, as it gives millions of users, greater access and control over their financial records, which otherwise remains in silos.

The Account Aggregator System facilitates consented sharing of data in real-time, and provides solutions to problems like individual data being siloed between financial institutions and service providers; and the difficult, largely physical process of collation and centralization, which is also expensive and time consuming. AA, which is supported by RBI, SEBI, PFRDA, and IRDA, offers solutions like acting as a digital intermediary to manage data flows based on consent from an individual. AA is also data-blind, data that flows through AA is encrypted. The electronic consent artefact is architected and approved by MeitY, and lastly, RBI approves AA through licenses and has oversight on the ecosystem including FIPs and FIUs.

As mentioned in 3One4 Capital’s latest report- India- A Startups Nation, a total of 3.9 million accounts have been linked by now to the AA system of India with 3.9 million consent requests, and more than 270 participants.

Sonakshi Datta
Sonakshi Datta
Journalist who wants to cover the truth which others look the other way from.

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