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IndusInd Bank goes live on RBI's Account Aggregator Framework

Friday 30 October 2020 14:29 CET | News

IndusInd Bank has gone live as a Financial Information Provider (FIP) under the new ‘Account Aggregator Framework’ of the Reserve Bank of India (RBI), making it the first bank in the country to do so.

Taking a step towards India’s entry into the world of Open Banking, RBI first announced the Account Aggregator (AA) framework via a Master Directive in June 2016. The initiative is a path breaking step taken by the RBI which will enable individuals as well as small and mid–sized businesses to avail services that will help them fulfill their financial requirements. With this, customers can now avail a host of benefits such as viewing statements of their accounts, track deposits, plan investments (such as shares, mutual funds, Insurance, EPF, PPF), avail credit cards, etc. on a single window, thereby empowering them to take informed decisions pertaining to their finances.

As an ‘FIP’, IndusInd Bank will facilitate customers to share their financial information with Financial Information Users (FIUs) on the Account Aggregator Ecosystem, basis an exclusive consent from the customer. Once the other financial institutions go live on the AA framework, it will eliminate the need for collecting/submitting physical documents for getting loans or accessing other financial products and services.

The Account Aggregator system offers the following benefits to customers:
1. Eliminates the existing process of physical document submission which is time consuming

 

2. Enables individuals and SME customers to share their financial information digitally with regulated financial institutions like banks, NBFC’s among others, within a secure framework 

3. Allows customers to have better control on financial information shared by providing his/her explicit consent before sharing the information.

 


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Keywords: IndusInd Bank, RBI, Account Aggregator Framework, Open Banking, finance management, loans, consent, SMEs
Categories: Banking & Fintech
Companies:
Countries: India
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Banking & Fintech






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