How Are 112 Financial Institutions Leveraging the Account Aggregator Framework?
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Synopsis
Discover how the Account Aggregator framework has transformed financial services in India, enabling over 112 institutions and 2.2 billion accounts to share data securely. This initiative marks a significant step towards financial inclusion and innovation in the country.
Key Takeaways
- 112 financial institutions are now part of the AA framework.
- Over 2.2 billion accounts are enabled for secure data sharing.
- The framework enhances financial inclusion in India.
- It allows users to aggregate financial data from multiple sources.
- Recognized as a critical Digital Public Infrastructure during the G20 presidency.
New Delhi, Sep 2 (NationPress) A total of 112 financial institutions have successfully integrated into the Account Aggregator (AA) framework, functioning as both financial information providers (FIP) and financial information users (FIU). Notably, 56 have engaged exclusively as FIPs, while 410 operate solely as FIUs, as stated by the Finance Ministry on Tuesday.
Currently, over 2.2 billion financial accounts are set up for secure, consent-driven data sharing via the AA framework, with 112.34 million users already linking their accounts. This highlights the increasing scale and trust in this innovative initiative, according to the ministry’s announcement.
The AA framework was officially inaugurated on September 2, 2021, creating a secure, consent-based system for the sharing of financial data.
In 2016, the Reserve Bank of India introduced the Master Directions for the Account Aggregator ecosystem.
The AA framework empowers users to consolidate their financial data (including bank accounts, investments, loans, etc.) from various sources and share it with service providers (such as lenders and wealth managers) for purposes like loan applications or financial planning.
Account Aggregators serve as intermediaries, safeguarding data privacy and user control through encrypted, permission-based data sharing.
During the G20 India Presidency in 2023, the AA framework was recognized as a foundational Digital Public Infrastructure (DPI), acting as the data exchange layer that complements identity (Aadhaar) and payments (UPI) layers.
The role and influence of AA have been acknowledged in key G20 documents, including the “Policy Recommendations for Advancing Financial Inclusion and Productivity Gains through Digital Public Infrastructure” (2023). Its importance is also outlined in the “Report of India’s G20 Task Force on Digital Public Infrastructure” (July 2024).
“Since its inception, the ecosystem has rapidly expanded and is experiencing increased adoption across banking, securities, insurance, and pension sectors, reinforcing India’s DPI,” the ministry stated.
The AA ecosystem is set to unlock new opportunities in formal credit access, particularly for MSMEs and personal lending, significantly contributing to India’s vision of Viksit Bharat by 2047.
Point of View
I believe the rapid expansion of the Account Aggregator framework signifies a pivotal moment in India's financial landscape. This initiative not only fosters trust but also enhances accessibility, particularly for underserved sectors like MSMEs, ultimately driving the nation towards its ambitious goal of Viksit Bharat by 2047.
NationPress
02/09/2025
Frequently Asked Questions
What is the purpose of the Account Aggregator framework?
The Account Aggregator framework enables users to consolidate and share their financial information securely, facilitating easier access to financial services.
How many financial institutions are currently using the AA framework?
Currently, 112 financial institutions have adopted the AA framework as financial information providers or users.
When was the AA framework officially launched?
The AA framework was officially launched on September 2, 2021.
What are the benefits of using the AA framework?
The AA framework provides users with control over their financial data, enhances privacy, and streamlines the process of accessing various financial services.
How does the AA framework support financial inclusion?
By facilitating secure data sharing, the AA framework helps improve access to credit and financial services, particularly for underserved communities and sectors.
