Account Aggregator system can democratise credit, bolster lending ecosystem

• India unveiled an Account Aggregator (AA) system – a data-sharing system that aims to revolutionize investing and credit.


• An account aggregator is a financial entity, which obtains and consolidates all the financial data of an individual, and presents the same in a manner that allows the reader to easily understand and analyse the different financial holdings of a person.

• In 2016, under the RBI Act, 1934, RBI released the “Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016” with:

• Account Aggregator as a special class of NBFC under section 45-1of RBI Act, to

• Enable easy sharing of financial data,

• Provide inbuilt consent framework for users etc.


• Firms will be able access timely quantitative and qualitative data which can help them to assess the creditworthiness of small businesses, recommend wealth management product for an individual, or tailor an insurance policy for a family.

• No other country in the world has developed such thorough data-sharing framework that can be deployed to cover over 50 million businesses and over a billion people.


Mains Paper 3: Economy

Prelims level: Account aggregator

Mains level: Read the newsfeed

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