After several banks, UPI platform PhonePe launches Account Aggregator services

After several banks introduced Account Aggregator in their banking systems, PhonePe Group also launched its Account Aggregator (AA) services today (June 6) through its wholly owned subsidiary, PhonePe Technology Services Pvt Ltd  (PTSPL). Ahead of the launch, PhonePe Technology Services Pvt Ltd (PTSPL) has integrated with multiple Financial Information Providers (FIP) such as YES Bank, Federal Bank, AU Small Finance Bank, etc. PTSPL is in the process of integrating with regulated Financial Institutions (FIUs) so that they can start taking consent from their users to do a real-time data fetch from the Financial Information Provider (FIP).

What is an account aggregator?

An Account Aggregator (AA) is a type of RBI-regulated entity (with an NBFC-AA licence) 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. Account aggregation, also known as financial data aggregation, is a method that involves compiling information from different accounts, which may include bank accounts, credit card accounts, investment accounts, and other consumer or business accounts, into a single place.
In the first week of September 2021, the finance ministry said eight of India’s largest banks had introduced the system, even though its concept was approved by the RBI in 2016.

Account Aggregator and PhonePe

Consumers can request, pause, or revoke any ongoing data consent directly from aa.phonepe.com or from within the PhonePe app itself, and this will allow PhonePe users to register and create a new interoperable AA handle. PhonePe users will also be able to access their bank statements instantly on the 'Check Balance' option on the PhonePe App’s homepage for free.
"The launch of the Account Aggregator service puts PhonePe Group at the forefront of building digital public infrastructure that will have a significant impact on millions of Indians. This will also empower users to access and control their own financial data, revolutionising the way they engage with financial services. The Account Aggregator Network sets the stage for a new era of digital connectivity, where individuals can harness the power of their own information to make informed financial decisions and unlock a world of opportunities," Rahul Chari, Co-Founder and CTO at PhonePe, said.

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