News Update

Eight banks join account aggregator network, a newly launched open digital financial platform

• ByAyushi Ray     |    September 3, 2021

Eight banks join account aggregator network, a newly launched open digital financial platform. Eight major banks in the country — State Bank of India, ICICI Bank, Axis Bank, IDFC First Bank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, and Federal Bank — have joined the account aggregator network. The technology was launched at a virtual event on Thursday. The account aggregator platform is an open banking system where the data of individuals is consensually collected and shared among the financial institutions so that they have a better understanding of the potential customers and provide services or products that are more suitable to them.

RBI Deputy Governor M Rajeshwar Rao said, “India is a world leader in building public digital infrastructure, and the Account Aggregator framework follows that tradition. AAs enable secure, consented data flows while protecting user privacy. In conjunction with other platforms like the Unified Payment Interface, Account Aggregator creates in India the most cutting edge digital financial infrastructure in the world. A statement from iSPIRT, a think-tank representing Indian software product companies, noted that AA reduces the need for individuals to wait in long queues at the bank, use complicated internet banking portals, share their passwords, or seek out physical notarisation to access and share their financial documents securely.

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