Taking loan, getting insurance now easier with RBI’s account aggregator
- ByAyushi Ray | September 6, 2021
Taking loan, getting insurance now easier with RBI’s account aggregator. Through this service,
customers will not need to do Know Your Customer (KYC) for taking loans, getting insurance or investing in mutual funds. RBI’s deputy governor M Rajeshwar Rao said last week that the account aggregator ecosystem in the nation is in a nascent stage and there is a need for its orderly growth. “The account aggregator ecosystem is still in a nascent stage of development. But given the sensitivity of the platform on account of the nature of data handled by it, it becomes imperative to ensure that the growth is orderly,” Rao said while speaking at iSPIRIT Foundation event last Thursday, according to news agency PTI.
State Bank of India, ICICI Bank, Axis Bank, IDFC First Bank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank and Federal Bank have planned to share customer data with the account aggregator network. This will also help banks and other financial institutions to get new customers. However, for sharing customer data, the bank or financial institution will have to take their consent, reports news agency PTI. The RBI has prepared stringent data privacy guidelines for the account aggregator. At the same time, the data that banks will share with the account aggregator will be completely encrypted.
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