Q. Which of the following statements best describes “Account aggregators”?

[A] It is web based online software application developed with the objective of tracking funds released under all plan schemes of government of India.

[B] It is an initiative of NPCI that captures the details of all bank accounts of an Individual at one place.

[C] It is an initiative of RBI which helps banks in verifying all details linked to bank accounts of individuals.

[D] It is a framework of RBI and will be involved in collection and sharing of the users financial information with a range of entities.

Answer: D
Notes:
  • Account Aggregator framework, introduced by the RBI, aims to make financial data more accessible by creating data intermediaries called Account Aggregators (AA)  
  • They will collect and share the user’s financial information from a range of entities that hold consumer data called Financial Information Providers (FIPs) to a range of entities that are requesting consumer data called Financial Information Users (FIUs) after obtaining the consent of the consumer. 
  • For example, if a user wishes to apply for a loan, the lender (an FIU) will require access to the previous financial statements of the user – which reside with the user’s Bank (an FIP) – in order to check their creditworthiness. 

Source- https://epaper.livemint.com/Home/ShareArticle?OrgId=1717f9ca38c&imageview=0 

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