What is the AA Framework?

Account Aggregator is a type of RBI-regulated framework that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network.

Let's take an example to understand this - let's say you went to HDFC Bank to apply for a loan. The bank employees would you ask for your income proofs, maybe in the form of bank statements or would want your investment information to calculate how much would you be able to have as security? Well. one way to provide all his information is via downloading your bank account statement through net banking and your other DEMAT holding etc. Now, what if someone says you can transfer this data directly to HDFC, like a UPI payment, well yes that's how the account aggregator framework also works. Just like UPI, you can transfer all this data to the financial information user using the account aggregator framework. And it doesn't matter whether your bank account is in HDFC or not, it can be in any other bank and your Demat account could also be somewhere else.

So, let's talk about the stakeholders that would make this data transfer possible using the Account Aggregator framework -

Account Aggregators (AA) are non-banking financial companies, licensed by RBI, that act like a bridge, to deliver data from Financial Information Providers (FIP) that hold your personal or corporate financial data to Financial Information Users (FIU) that are providing financial services to you.

See the current list of Account Aggregators here - https://sahamati.org.in/current-members/

Financial Information Provider (FIP) are institutions that hold user data. These are the banks, or NBFCs that share customer’s financial information with Financial Information User (FIU) via requests through an Account Aggregator.

See the current list of FIUs here - https://sahamati.org.in/fip-fiu-in-account-aggregators-ecosystem/

Financial Information Provider (FIP) are institutions that hold user data. These are the banks, or NBFCs that share customer’s financial information with Financial Information User (FIU) via requests through an Account Aggregator.

See the current list of FIPs here - https://sahamati.org.in/fip-fiu-in-account-aggregators-ecosystem/

Technology Service Providers (TSP) collaborate with FIUs and FIPs to deliver AA products and services. They develop the foundation modules that connect FIP and FIU modules to the Account Aggregators in the ecosystem.

TSPs can also help fintech products in various areas like underwriting models, SME Scorecards, product design of apps and more. Additionally, TSPs can offer a single-window onboarding experience to AA ecosystem participants by becoming intermediate certified entities.

Signzy is one the TSP members providing these services and has partnered with the account aggregator Finvu.

To become a part of the Account Aggregator Ecosystem, FIPs, AAs and FIUs need to adhere to Technical Standards prescribed by ReBIT. Sahamati has made this process easier by providing access to a set of tests that all AA ecosystem participants may use, to check their adherence to ReBIT tech standards. Sahamati has empanelled organisations that wish to provide independent certification services to members of the AA ecosystem.

See the current list of empanelled certifiers here- https://sahamati.org.in/empaneled-certifiers/