Overview of NBFC Account Aggregator License
Account Aggregators are such kind of entities which acts as a consent broker that enables sharing of the financial data among the financial institutions in the financial sector. Hence, Account Aggregation is the gathering of all the financial data that includes assembling of all the information on a single platform from different accounts like the investment accounts, bank accounts, consumer accounts, business accounts and other related financial accounts.
Account Aggregators are the financial organizations that grant structured allocation of financial data from the Financial Information Providers to the Financial Information Users. For transmitting this information, the approval request is taken from the users. The right of administering and revoking the assent lies with the users.
What is NBFC Account Aggregator?
NBFC Account Aggregator is that financial entity which functions as the Account Aggregator for the customers of NBFC. NBFC-AA accumulates and provides information concerning multiple accounts which are held by the customers in various NBFC entities. The information of the customer account information will be in the form of organized, consolidated and retrievable data that would reveal the financial engagement of the customer in different NBFC products like mutual funds, insurance etc.. This was conceptualized by the RBI in the year 2015. For Non-Banking Finance Companies - Account Aggregators (NBFC-AA), RBI has declared master directions.
NBFC-AA (NBFC Account Aggregator) is a kind of budgetary element which is involved in the process of giving data to NBFC clients identified with accounts held by clients in various NBFCs. Such data will be in a united and sorted out way. The data will be related to the financial involvement of the customer with the various products of NBFC.
For Your Better Understanding Let Us Clarify The Importance Of Both The Terms:
- Financial Information Provider (FIP):
These are those financial organizations that grant user’s account information upon the request of another individual or organization and are harmonized under the financial sector.
- Financial Information User (FIU):
These organizations need information regarding the users from the FIP for many purposes such as customer analysis, market evaluation, etc. This includes both individuals and organizations. These entities are regulated by the financial sector regulators such as RBI, IRDA, SEBI, PFRDA.
- The sharing of the Financial Information has to be according to the direction issued by the RBI-DNBR.
What constitute the Financial Information?
Financial Information consists of the following information:
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Benefit of NBFC Account Aggregator
Requirements for NBFC-AA Registration