Exploring the Future of Indian Fintech: Insights into the RBI’s Account Aggregator Framework

Kesari explains the role of an account aggregator (AA) as a consent manager and licensed financial data intermediary. The AA framework, part of India’s Data Empowerment and Protection Architecture (DEPA), mediates user financial data transfer between financial institutions and service providers, ensuring user consent. This framework, unique globally, takes a techno-legal approach to data sharing, offering secure, consented, and legal data transfer.

The AA framework, established under the Reserve Bank of India (RBI)’s 2016 Non-Banking Financial Company – Account Aggregator Master Directions, is part of India’s broader push for digital public infrastructure, which includes the Unified Payments Interface and Open Network for Digital Commerce. It aims for an open, interoperable infrastructure with real market competition. This approach prevents dominance by a single entity, ensuring a level playing field and fostering innovation and user-friendly financial technology solutions.

Please click here or refer below to listen to the full podcast by Probir Roy Chowdhury and Yajas Setlur andVinay Kesari published in Chambers and Partners.