France and India can work together on Account Aggregator model: Nilekani1 min read . Updated: 20 Nov 2020, 11:10 PM IST
‘Account aggregation can help in faster processing of loans and credit for individuals and businesses’
Bengaluru: India and France can work together on ideas around the recently launched account aggregator (AA) model, said Nandan Nilekani, the founding architect of Aadhaar and co-founder and non-executive chairman of Infosys Ltd, on Friday at the Bengaluru Tech Summit 2020.
France has always been a leader in biometrics and smartcards, making it a good fit for both countries to work together and innovate on the model, Nilekani said.
Account aggregators are a new class of non-banking financial companies approved by the Reserve Bank of India (RBI) to manage content for financial data sharing.
Account aggregation involves the collection, assembly and synthesis of information from multiple accounts, such as loan or credit accounts, savings and current accounts, and government accounts, such as public provident fund and income tax return data, and supplementary business or consumer accounts, including those of e-commerce, food or mobility aggregators, on a single platform.
In July 2019, Nilekani had introduced the AA platform, a digital public infrastructure developed in collaboration with major Indian financial regulators, to manage data on behalf of consumers and streamline its access to payment and financial service providers.
Data is critical and individuals or businesses can get their transaction and other details in the account aggregator ecosystem, Nilekani added.
“Account aggregator programmes must be encouraged so that businesses and individuals can access their own data for any service. Businesses can own data for any information they want pertaining to their goods and services tax filing or tax details on the go. This can help in the faster processing of loans and credit for individuals and businesses."
Nilekani also called for cooperation between the two countries to generate ideas in account aggregation.
About Aadhaar, Nilekani said 1.25 billion people have the cards now. “The Aadhaar platform backed the cash transfer programme and billions of dollars were transferred into the account of scores of people across the country over the last few months during the pandemic. Besides this, today the united payments interface (UPI) system combines the rigours of the banking system. The UPI platform after its launch in 2017 had initially only 100,000 transactions a month but now has around 2 billion transactions a month," Nilekani added.