RBI Account Aggregator: Ushering in a new era of loan applications

An aa account online is a convenient platform that functions as a centralized hub for all necessary documents required while applying for a loan. This platform gathers crucial information like bank statements, salary details, previous loan history, repayment records, and a summary of investments and assets. The platform fetches the relevant data directly from the financial institutions you have dealt with, including banks, insurance providers, mutual fund companies, and credit card issuers. The Reserve Bank of India has introduced the Account Aggregator framework to simplify the borrowing and lending process, similar to how UPI revolutionized digital payments. Account Aggregation aims to reduce the steps involved in accessing a loan.

What are the working steps involved in the Account Aggregator framework?

1. Setting up the account

Using an aa account online requires opening an account with an AA platform as a personal or business profile. To do this, users go through a registration process on the platform’s website or app, providing basic information and identification documents. Login credentials are set up for secure access and management of the account. With the account set up, users can grant consent to access their financial data by chosen financial institutions and start the process. 

2. Sharing of the consent

To use an Account Aggregator, customers must allow their financial data to be accessed by the lending institution (FIU) through the AA platform. Customers can select which financial institutions they want to grant access to their data and set the duration of the consent. By granting consent, customers allow the FIU to securely retrieve their financial data from the AA platform for a specific purpose. This process ensures transparency and customer control over data sharing.

3. Retrieval of data

The aa account online retrieves financial information on behalf of customers using APIs to communicate securely with Financial Information Providers. The AA requests specific information, such as bank statements, salary details, and loan history, which are securely processed and transmitted back to the AA. APIs ensure data protection during transmission and maintain data integrity and privacy, allowing seamless and secure communication between AA and FIPs.

4. Ensuring secure data transmission

The Financial Information Provider ensures the secure transmission of financial data to the Financial Information User through the Account Aggregator. The FIP uses encryption protocols and secure communication channels to protect customer data from unauthorized access or interception. The AA acts as a secure intermediary to maintain data confidentiality during transmission. The FIP ensures that customers’ financial data remains safe from threats or breaches during transmission. 

5. Evaluation Of Data 

In the data evaluation phase, the FIU receives encrypted financial data from the FIP through an aa account online. They analyze this information to assess the customer’s creditworthiness, loan eligibility, and other financial services. The FIU examines bank statements, loan history, repayment records, and relevant data to determine creditworthiness. They also consider income, assets, and liabilities to evaluate eligibility for specific financial products. Data evaluation enables informed decisions, risk assessment, and tailored financial solutions. 

What are the needs of the Account Aggregator framework? 

1. Simplifying the data

Account Aggregators simplify financial data consolidation using digitization and the AA framework. They allow individuals to gather all their financial information from various sources in one platform, giving complete control over their data. AAs enable individuals to manage their finances, monitor accounts, and make informed decisions. They streamline the financial management process, improve efficiency, and enhance data security.

 2. Data accessibility control

AAs allow customers to manage who can access their financial data. They can grant or revoke access whenever they want, which helps safeguard their confidential information. With an aa account, customers can decide when and for what reasons their data can be accessed. This control allows them to protect their sensitive financial information and share it only with trusted parties. By maintaining this control, they can reduce the risk of unauthorized data usage and maintain their privacy. AAs provide a secure and personalized way for individuals to manage their financial data, promoting transparency and data protection in the digital financial ecosystem. 

3. Helping MSMEs to grow

AAs help cash-strapped MSMEs access formal financing more easily by providing financial institutions with a comprehensive view of their financial profile within seconds. AAs securely share financial information with lenders with the MSMEs’ permission, including bank statements, loan history, and repayment records. This information helps lenders assess creditworthiness more accurately and make informed lending decisions, increasing the chances of MSMEs accessing loans and other financial services. By bridging the information gap, aa account online enable financial institutions to serve MSMEs more effectively and foster financial inclusion and economic opportunities. 

4. Enhanced creditworthiness

AAs help lenders assess creditworthiness effectively by providing a comprehensive financial profile of the borrower. This includes bank statements, loan history, and repayment records. By reducing financial information asymmetry, AAs enable lenders to make informed decisions on creditworthiness. This leads to fairer and more accurate credit assessments, thereby mitigating lending risks. A transparent lending ecosystem is created, benefiting both lenders and borrowers by facilitating better access to financial services.

 5. Speeding up the process of loan evaluations 

AAs expedite loan evaluations by facilitating secure data sharing, streamlining the process, and reducing delays. Through the aa account online framework, lenders access comprehensive financial information securely, eliminating manual document submission. This saves time and reduces administrative burdens.AAs ensure data protection and confidentiality by securely exchanging information among the Account Aggregator, Financial Information Providers, and Users. Streamlined evaluations enable lenders to assess applications quickly, making timely lending decisions. This benefits lender and borrowers by reducing processing time and providing faster access to funds. AAs aim to accelerate loan evaluations, minimize delays, and enhance lending efficiency. 

What are the types of data that can be shared? 

 1. Bank deposits

Savings accounts, fixed deposits, and recurring deposits can be shared via AA. This enables authorized entities to access balances, and transactions, aiding creditworthiness assessment. Customers control the shared data, streamlining information access.

 2. Equity And Mutual Fund Investments

The aa account online framework allows customers to share information about their equity and mutual fund investments. This includes details such as the types of investments, quantities, and current values. 

3. Income Tax Returns

Customers can furnish their income tax returns, including details about their earnings, deductions, and tax obligations. 

4. GST returns

The details of a customer’s business dealings, including sales, purchases, and tax liabilities related to the Goods and Services Tax, can be disclosed through their GST returns. 

5. Pension Fund & Bank Statements 

Customers can share their pension funds information, such as contributions and accrued benefits. Additionally, bank statements showing account balances, transaction history, and other financial activities can be shared.

Summary – Anumati is a brand offered by Perfios Account Aggregation Services Pvt Ltd, a non-banking financial company-account aggregator with a license issued by RBI. As an NBFC-AA, it is authorized to function as an aa account online, enabling the secure and consent-based transfer of financial information between customers, financial institutions, and other authorized entities.