No need of double KYC as Reserve Bank allows aggregator service

No need of double KYC as Reserve Bank allows aggregator service

AA acts as an intermediary and helps connect the customer to multiple Financial Information Providers (FIPs) through standardised API (Application Programming Interfaces).

New Delhi: Customers who are taking loans, insurance service or investing in mutual funds will not be required to do Know Your Customer (KYC), thanks to the Reserve Bank of India (RBI's) account aggregator service --Sahamati Platform. 

The account aggregator ecosystem in the country is in a nascent stage and there is a need for its orderly growth, Reserve Bank of India's deputy governor M Rajeshwar Rao said last week.

What are Account Aggregators?

Account Aggregators (AA) are entities that enable financial data sharing from Financial Information Providers (FIPs) to Financial Information Users (FIUs), based on the consent from the customers. AA acts as an intermediary and helps connect the customer to multiple Financial Information Providers (FIPs) through standardised API (Application Programming Interfaces).

Account Aggregators that have received approval from RBI

Some of the account aggregators that have received approval from RBI include CAMSFinServ, Cookiejar Technologies Pvt Ltd, FinSec AA Solutions Pvt Ltd and NSEL Asset Data Ltd, among others.

Which entities can participate in the AA ecosystem?

Companies registered and regulated by any of the 4 regulators – Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA) can be a FIP or FIU.

Benefits of Account Aggregators?

Account aggregator frameworks also benefit the users as they get access to the financial information of potential customers on a real-time basis, reducing the turnaround time for the provision of financial