This launch marked a major milestone in our nation's journey towards enabling financial inclusion for all its citizens. As the government press note said, the network "could revolutionise investing and credit, giving millions of consumers greater access and control over their financial records."
Under this framework, India now has a set of Account Aggregators, a new type of RBI-licensed and regulated entities. Individuals like you and me can choose any of the Account Aggregators to securely share information from any bank or a financial institution that we have an account with, to any other bank or financial institution, provided both parties have joined the AA network.
In other words, AA are a type of data intermediaries that facilitate sharing of financial information in a real-time data-blind manner between regulated entities. Specifically, they enable data flow between Financial Information Providers (FIPS) and Financial Information Users (FIUS). FIPS holds the customer data, and FIUs consume data to offer better service and underwrite loans.
The system currently enables sharing only of banking transaction data (for example, bank statements from a current or savings account) with other entities. Gradually, it will make all financial data available for sharing, including tax data, pensions data, securities data (mutual funds and brokerage), and insurance data. The long-term vision is to expand the AA network beyond financial services to even include healthcare and telecom data.
Democratising Credit
هذه القصة مأخوذة من طبعة June 2022 من BANKING FINANCE.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة June 2022 من BANKING FINANCE.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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RBI CIRCULAR
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Legal News
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Indian banks, especially grappling with the mounting challenge of Non-Performing Assets (NPAs) within Scheduled Commercial Banks (SCBs), are experiencing a significant downturn in their capacity for credit recycling, resulting in reduced business opportunities and declining profits. However, various factors contributing to the severity of NPA problem are including macro-economic, political, and internal factors, emphasizing the complexity of the issue. With this background, the present study puts an effort to look at the role of the Insolvency and Bankruptcy Code (IBC) in NPA recovery and also showcasing its significance in resolving insolvency and maximizing creditor recovery.
Big Data in Banking: Analysing its Role, Advantages and Challenges
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Is SIP Always the Best Option? A Look into Lump-Sum vs SIP During Volatile Markets
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Strategies for Mutual Fund Retail Investors during market downturns
When stock markets experience a decline, mutual fund investors often face a sense of insecurity and apprehension. The volatility can lead to impulsive decisions, which, rather than securing financial health, may impair long-term investment objectives.
The Rise of Green Marketing: Driving Sustainable Change
Green marketing refers to the practice of promoting products or services that are environmentally friendly or sustainable. It involves incorporating eco-friendly elements into various aspects of marketing strategies, including product development, packaging, advertising, and distribution.
Fraud Risk Management In Banking
Fraud risk management is a fundamental aspect of overall Risk Management within the banking sector. In India, banks adhere strictly to guidelines set forth by the Reserve Bank of India (RBI) to prevent, detect, and promptly report fraudulent activities.
