MUMBAI: To streamline data exchange and resolve operational issues within the financial sector, the Reserve Bank has called applications for a self-regulatory organisation (SRO) for the account aggregator (AA) ecosystem.
The regulator had introduced an account aggregator framework way back in September 2016, with an aim to facilitate secure exchange of financial information between various entities.
“To support smoother adoption and stabilisation, the RBI has determined it is desirable to have a dedicated SRO for the AA ecosystem,” the regulator said Wednesday.
“The AA ecosystem is distinct in its complexity, involving the exchange of data among a diverse array of regulated entities operating under varied regulatory environments. This complexity necessitates frequent coordination among these REs to address various operational issues such as dispute resolution, standardised agreements and common services,” the RBI added and sought responses from interested parties to apply through the Pravaah portal before June 15.
The framework involves non-banking financial oompany-account aggregators (NBFC-AAs) acting as intermediaries between financial information providers (FIPs) and financial information users (FI-Us), the RBI said.
The entities coming under the AA ecosystem are regulated by various bodies including the RBI, the Securities and Exchange Board, the Insurance Regulatory and Development Authority, and the Pension Fund Regulatory and Development Authority. The Union revenue department is also deemed the regulator for the GST Network within this ecosystem.
This RBI framework details the characteristics, responsibilities, eligibility criteria, and governance aspects of the SRO-AA, which will operate within the existing regulatory framework for the AA ecosystem, the central bank said. While the technical specifications will continue to be framed and published by Reserve Bank Information Technology (ReBIT).
The regulator’s decision will be final unless it asks for resubmission.
Last August, RBI had recognised the Fintech Association for Consumer Empowerment as an SRO in the fintech sector (SRO-FT).
In February, the country’s largest mobile payments firm with over 600 million users Phonepe decided to exit the account aggregator business and surrender its NBFC-AA licence, citing a shift in focus to other business areas and a plan to partner with existing aggregators.