Introduction: In a recent communication, the Reserve Bank of India (RBI) has issued an important mandate concerning entities within the Account Aggregator (AA) ecosystem. The directive addresses the participation of regulated entities in the roles of Financial Information Provider (FIP) and Financial Information User (FI-U) and aims to optimize data exchange within the ecosystem.
The RBI Directive: The RBI, in accordance with the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, has noted a discrepancy within the AA ecosystem. Some eligible entities that could function as Financial Information Providers (FIPs) have chosen to join as Financial Information Users (FI-Us) instead. This decision has led to a situation where these entities can access financial information from other FIPs but are not reciprocating by providing their own financial information.
Ensuring Efficient Data Exchange: To rectify this issue and ensure the efficient and optimal utilization of the AA ecosystem, the RBI has made it mandatory for regulated entities of the Bank joining the AA ecosystem as FI-Us to also join as FIPs, provided they hold the specified financial information and fall under the definition of FIP. This move seeks to create a more balanced and equitable data-sharing environment within the ecosystem.
Modifications to the Master Direction: As a result of this directive, the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, is being modified to reflect this change in requirements. Regulated entities must adapt to these modifications and ensure compliance with the updated regulations.
Conclusion: The RBI’s recent mandate is a significant step towards fostering a more balanced and effective data-sharing ecosystem within the Account Aggregator framework. Regulated entities are now obliged to take on the roles of both Financial Information Providers and Financial Information Users, provided they possess the relevant financial information. This move is expected to enhance the efficiency of the AA ecosystem and ensure that all participants contribute to the sharing of financial data, ultimately benefiting the entire financial landscape. Entities affected by this directive should promptly adapt to the updated regulations to remain compliant with RBI’s requirements.
****
RESERVE BANK OF INDIA
RBI/2023-24/77
DoR. FIN. REC.53/03. 10.123/2023-24 Dated: October 26, 2023
All Regulated Entities of the Bank
Dear Sir/ Madam,
Joining the Account Aggregator Ecosystem as Financial Information User
Please refer to the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016.
2. It has been observed that certain entities, which are eligible to join Account Aggregator (AA) ecosystem as Financial Information Provider (FIP), have onboarded as Financial Information User (FI-U) only. Consequently, such entities are accessing financial information from other FIPs but are not providing the financial information held by them. As such, with a view to ensure efficient and optimum utilisation of the AA ecosystem, it has been decided that regulated entities of the Bank joining the AA ecosystem as FIU shall necessarily join as FIP also, if they hold the specified financial information and fall under the definition of FIP.
3. The Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, is being modified accordingly.
Yours faithfully,
(R. Lakshmi Kanth Rao)
Chief General Manager-in-Charge
