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Consider the following statements regarding the recently launched Account Aggregator Framework.
1. It was launched by Securities and Exchange Board of India (SEBI).
2. Account aggregators will act as intermediarieswho will collect financial data from one financial entity and exchange it with another.
3. It will help the banks in faster processing of a loan application.
Which of the above statements is/are correct?
  • a)
    1, 2
  • b)
    1, 3
  • c)
    2, 3
  • d)
    1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements regarding the recently launched Acco...
  • Recently, the Reserve Bank of India launched the Account Aggregator Frameworkaimed at making financial data more easily accessible.
  • According to the Reserve Bank of India, an Account Aggregator is a non-banking financial company engaged in the business of providing, under a contract, the service of retrieving or collecting financial information pertaining to its customer.
  • It is also engaged in consolidating, organising and presenting such information to the customer or any other financial information user as may be specified by the bank.
  • The licence for Account Aggregator is issued by the RBI, and the financial sector will have many AAs.
How will an account aggregator work?
  • The framework will allow financial data to be exchanged between the holders of data and its users.
  • The RBI has allowed a number of companies like PhonePe to act as account aggregators to facilitate this process.
  • Account aggregators will act as intermediaries who will collect data from one financial entity and exchange it with another.
For example, a bank which is processing a loan application from a potential borrower may want to access a variety of financial data about the borrower.
The lending bank can access details of the borrower’s savings, past loan repayment record, mutual fund holdings and insurance holdings through an account aggregator.
The borrower, however, will have to grant consent for the sharing of his data with the lending bank.
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Consider the following statements regarding the recently launched Account Aggregator Framework.1. It was launched by Securities and Exchange Board of India (SEBI).2. Account aggregators willact as intermediarieswho will collect financial data from one financial entity andexchange it with another.3. It will help the banks in faster processing of a loan application.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?
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