Account aggregation is collecting and storing financial information on a single platform from various accounts such as bank accounts, business accounts, investment accounts, consumer accounts and other financial-related accounts. The account aggregator in India are RBI-regulated entities with an NBFC-AA license that helps the induvial or financial institutions securely and digitally access and share the information on a single platform in the network. The data cannot be shared without the consent of the induvial, and there are many aggregators available that you can choose from.   

How Does Account Aggregators (AA) Ecosystem Work?  

Account aggregators are the financial entities that regulate the structured financial data sharing from Financial Information Providers (FIP) to Financial Information Users (FIU). The right to manage and revoke the consent lies with the users, and it is important while sharing.   

Financial Information providers refer to the financial entities that provide account information of a user upon the request of another induvial and are regulated under the financial sector. The Financial Information User refers to the entities that collect the information of a user from FIP for multiple uses such as market assessment, customer analysis etc.   

What are NBFC-AA License Account Aggregators?  

The NBFC Account Aggregator is a financial entity that provides account aggregation services for NBFC customers. This means that NBFC-AA gathers and consolidates information from multiple accounts held by a customer in different NBFCs, providing a comprehensive view of the customer’s financial engagement in different NBFC products (e.g., mutual funds, insurance, etc.). This makes it easier for customers to track their finances and make informed decisions about their money.  

Importance of NBFC-AA License  

NBFC-AA provides users with specific information about their investments in various assets. Mostly, the users have a broad idea about their financial asset holdings, including mutual funds, insurance policies, fixed deposits, pensions, salary accounts etc. Therefore, NBFC-AA is crucial for users to track and analyse their finances in a better way.   

Requirements of Obtaining an NBFC-AA License  

• To become the NBFC account aggregator license, a minimum of Rs. 2 crores are required. In spite of that, the company will have a duration of 12 months to raise money after getting the principal approval from the RBI. No other services can be provided by the NBFC-AA other than account aggregation.   
• The NBFC-AA will provide financial users with details about the customer. However, NBFC Account Aggregators are not allowed to engage in fund-based activities like other NBFCs. Additionally, the NBFC-AA cannot use the customer’s financial assets details for any other purpose.  
• After getting the approval from the regulator, the NBFC account aggregator will have 12 months to set up all the mandatory technologies and tie-ups to carry out the business of account aggregation.   

• As per the RBI, an entity which is involved in aggregating accounts of a specific financial sector that other regulators regulate can be given an exemption from RBI approval. These types of entities are not allowed to carry out financial activities like other NBFCs.  

If you are looking for the best account aggregators in India, Anumati is one of the finest to mention here. To know how it works, download the app available on Google Play Store today.