On October 29, 2020 IndusInd Bank announced that it has gone live as a Financial Information Provider (FIP) under the new Account Aggregator(AA) Framework of the Reserve Bank of India (RBI). IndusInd Bank becomes the 1st bank in India to do so. The bank went live as FIP with DigiSahamati Foundation, a self-organised Collective of the Account Aggregator ecosystem.
i.IndusInd Bank as a FIP enables customers to share their financial information with Financial Information Users in a secure and seamless manner, basis exclusive consent from the customer on the AA Ecosystem.
ii.After the other financial institutions go live on the AA framework, IndusInd Bank will eliminate the need to collect and submit physical documents to get loans or access other financial products and services.
Benefits offered by Account Aggregator system to Customers:
Eliminates the need to submit the documents physically
It eliminates the current process of physical document submission that consumes time.
Individuals & SME Customers can digitally Share their Financial Info
It enables the individuals and SME(Small and Medium-sized Enterprises) customers to digitally share their Financial Information Users(FIUs) with regulated financial institutions like banks, NBFC’s(Non-Banking Financial Companies) among others, within a secure framework.
Better Control on Shared Financial Info
It allows customers to have better control on the shared financial information by providing his/her explicit consent before sharing the information.
Among others, the customers can avail host of benefits like viewing their accounts statements, track deposits, plan investments (such as shares, mutual funds, Insurance, EPF- Employees’ Provident Fund, PPF- Public Provident Fund) on a single window, thus empowering them to take informed decisions about their finances.
Gist about Account Aggregator Framework:
i.In June 2016, RBI(Reserve Bank of India) announced the AA framework through a Master Directive.
ii.Account Aggregators are responsible to transfer the client data, but not storing it.
iii.AA ecosystem is a platform for financial services companies to get approval from customers before using their personal data to optimise their product offerings.
iv.It is a vital step to empower the customer to view and choose their preferred product & service from banks and other participating players.
Recent Related News:
i.HSBC India becomes 1st Foreign Bank in India to launch a ‘Green Deposit Programme’ exclusively for corporate clients to finance green initiatives and eco-friendly projects like renewable energy, clean transportation, and pollution prevention among others, that promote transition to a low-carbon, climate resilient and sustainable economy.
ii.On May 19, 2020, In view of the ongoing lockdown in the country due to Coronavirus (COVID-19), Kotak Mahindra Bank has become the 1st bank in India to allow video Know your customer (KYC) facility for its customers opening savings account (SA) on Kotak 811 platform.
About IndusInd Bank:
Managing Director(MD)& Chief Executive Officer(CEO)– Sumant Kathpalia
HeadOffice– Mumbai, Maharashtra
Tagline-We Make You Feel Richer