RBI Issues Framework for Self-Regulatory Organisation (SRO) for Account Aggregators

The Reserve Bank of India (RBI) has introduced a framework for the recognition of a Self-Regulatory Organisation (SRO) for the Account Aggregator (AA) ecosystem. This initiative aims to facilitate smooth data exchange, address operational challenges, and ensure compliance across multiple regulatory entities. The move is expected to enhance coordination, standardisation, and dispute resolution within the AA framework.

Key Highlights

Objective

• To establish a dedicated SRO for the Account Aggregator (AA) ecosystem to streamline financial data exchange and resolve operational issues.

Background

• RBI introduced the AA framework in September 2016 to enable secure financial data sharing.
• August 2024: RBI recognised the Fintech Association for Consumer Empowerment as an SRO for the fintech sector.

Why an SRO for AAs?

• The AA ecosystem involves multiple regulated entities operating under different financial sectors.
• A dedicated SRO will help in dispute resolution, standardised agreements, and common services for better coordination.

Application Process

• Interested parties must apply via the Pravaah portal before June 15, 2025.
• The RBI’s decision will be final unless a resubmission is requested.

Entities Involved in the AA Ecosystem

• Financial Information Providers (FIPs) and Financial Information Users (FIUs) interact through NBFC-Account Aggregators (NBFC-AAs).
• Regulated by RBI, SEBI, IRDAI, PFRDA, and the Union Revenue Department (GST Network regulator).

Technical Specifications

• The Reserve Bank Information Technology (ReBIT) will continue to frame and publish technical specifications.

Industry Update

• February 2025: PhonePe exited the AA business, surrendering its NBFC-AA licence to focus on partnerships with existing aggregators.