India invites applications for self-regulatory body for account aggregators

Reuters

RBI seeks applications for a self-regulatory body for account aggregators. The SRO will oversee compliance, ensuring secure financial data-sharing. Eligible entities must apply by 15 June, with at least 25 members from financial providers and users.

India invites applications for self-regulatory body for account aggregators 

India’s central bank, the Reserve Bank of India (RBI), has called for applications to recognize a self-regulatory organization (SRO) for account aggregators. These entities facilitate the secure exchange of financial data between institutions, playing a crucial role in the country’s evolving digital finance landscape.  

The RBI will approve only one such body, and applications must be submitted by 15 June. Eligible applicants include entities regulated by financial sector authorities. The SRO must have at least 25 members each from financial information providers, such as banks, and financial information users, like brokerages.  

The recognized organization will oversee compliance with the regulatory framework for account aggregators, ensuring transparency and security in financial data-sharing. By establishing this SRO, the RBI aims to enhance the efficiency and reliability of account aggregation services while safeguarding consumer interests.  

This move aligns with India’s push towards a more structured and secure digital financial ecosystem, reinforcing trust in data-sharing mechanisms. As financial institutions prepare their applications, the formation of a self-regulatory body is expected to strengthen governance and foster innovation in India’s financial sector.

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