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.
Summary/Static Details
Why in the news? RBI Issues Framework for Self-Regulatory Organisation (SRO) for Account Aggregators
Framework Introduction RBI introduced the Account Aggregator (AA) framework in 2016 for secure financial data exchange.
New Initiative RBI issued a framework for an SRO for AAs to enhance coordination and dispute resolution.
Application Deadline Interested parties must apply via Pravaah portal by June 15, 2025.
Entities Involved NBFC-AAs, FIPs, FIUs, regulated by RBI, SEBI, IRDAI, PFRDA, and the Union Revenue Department.
Technical Oversight ReBIT will frame and publish technical specifications.
Industry Development PhonePe exited AA business (Feb 2025), surrendering its NBFC-AA licence.
Previous SRO Recognition RBI recognised Fintech Association for Consumer Empowerment (Aug 2024) as an SRO for fintech.
Shivam

Recent Posts

India’s First-Ever SHAPE 2025 Conference: A Game-Changer in Hospital Planning

The Army Hospital Research & Referral (AHRR), New Delhi, hosted the first-ever Armed Forces National…

27 mins ago

Which is the Largest Hing Producing State in India?

Hing, also known as asafoetida, is a strong-smelling spice used in many Indian dishes and…

34 mins ago

World’s Most Beautiful Airport of 2025 Revealed – Changi Misses Out!

The Prix Versailles Awards 2025 have crowned Yantai Penglai International Airport’s Terminal 2 in China…

44 mins ago

Oscar Piastri Wins the 2025 Belgian Grand Prix at Spa

Oscar Piastri clinched victory in the 2025 Belgian Grand Prix at Spa-Francorchamps, holding off teammate…

52 mins ago

Post-Assad Syria to Hold First Parliamentary Elections in September

Syria will conduct its first parliamentary elections since the fall of Bashar al-Assad between 15…

2 hours ago

Latin American Countries to Launch Latam-GPT AI Model

In a landmark initiative, a coalition of 12 Latin American countries is set to launch…

2 hours ago