Account aggregators will see “dramatic consumption" in the next 2-3 years in India, Nandan Nilekani, chairman of Infosys Ltd and former chairperson of Unique Identification Authority of India (UIDAI) said at the ongoing Global Technology Summit in Bengaluru.
In 2016, the central bank had approved a new class of non-banking financial companies (NBFCs) called account aggregators which would facilitate consented sharing of financial information in real time. It is like a broker taking user permission to access their financial accounts and aggregate and organise all their financial information in one place.
Till date, seven account aggregators have in-principle approval from the central bank while one of them is on the final stages of going live, Nilekani said.
“The account aggregator is a data access fiduciary. They cannot read or resell consumer data. They enable consumers to selectively share or even revoke data once shared. They have a fiduciary duty to consumers," Nilekani said.
For India, rapid adoption of the account aggregator framework could be an opportunity to be a global leader in the digital economy, Nilekani said. “At least 20 other countries are looking to adopt this framework."
In the long run, account aggregators are intended to make credit accessible to people who are currently not part of the credit ecosystem and help them become part of the formal financial system.
The Union Cabinet on Wednesday approved the Personal Data Protection Bill which is expected to lay down a framework that will include processing of personal and private data by public and private entities, among others.