PhonePe Account Aggregator Pvt Ltd has now got in-principle approval from the Reserve Bank of India (RBI) to operate as an account aggregator.
What is an Account Aggregator?
Account aggregator is mainly responsible to offer services based on the explicit consent of individual clients including the transfer, but not storing of a client’s data.
However, with the approval, PhonePe can now launch its account aggregator platform enabling the free and instant exchange of financial data between financial information providers (FIPs) and financial information users (FIUs) with due consent from customers. Additionally, it may help Indian consumers to get financial services in a cheaper, faster, and convenient manner than before.
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See, What Does Rahul Chari CTO and Co-Founder of PhonePe Say?
Rahul Chari CTO and co-founder of PhonePe said, ”The account aggregator licence will allow us to play a pivotal role in shaping the emergent account aggregator ecosystem for consent-based financial data sharing”.
He additionally said that “our account aggregator technology stack will provide financial information user (FIU) through which can instantly retrieve financial information with customer consent from the Financial information provider (FIP). Also, we are planning to work closely with all the industry stakeholders to take forward RBI’s vision of driving deeper financial inclusion across the country.”
