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India recently unveiled the Account Aggregator network. In this context, consider the following statements:
  1. Account Aggregators are RBI regulated entities sharing digitally signed and encrypted data.
  2. Registering with an Account Aggregator is fully voluntary for consumers.
  3. The Account Aggregators can read and resell the consumer data.
Which of the statements given above is/are correct?
  • a)
    1 and 2 only
  • b)
    2 and 3 only
  • c)
    3 only
  • d)
    1, 2 and 3 .
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
India recently unveiled the Account Aggregator network. In this contex...
Recently India unveiled the Account Aggregator (AA) network, a financial data-sharing system that could revolutionize investing and credit. 
  • An Account Aggregator (AA) is a type of RBI regulated entity (with an NBFC-AA license) that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network. Data cannot be shared without the consent of the individual. Hence statement 1 is correct. 
  • The AA is an interoperable data blind consent manager. AAs cannot read consumer data. They cannot resell consumer data. AAs enable consumers to selectively share and even revoke data once shared. AAs have a fiduciary duty to consumers and are RBI regulated entities, sharing digitally signed and encrypted data. Hence statement 3 is not correct. 
  • The Account Aggregator network allows sharing of transaction data or bank statements from savings/ deposit/current accounts. Account Aggregators cannot see the data; they merely take it from one financial institution to another based on an individual's direction and consent. Contrary to the name, they cannot 'aggregate' your data. AAs are not like technology companies which aggregate your data and create detailed profiles of you. 
  • Registering with an AA is fully voluntary for consumers. If the bank the consumer is using has joined the network, a person can choose to register on an AA, choose which accounts they want to link, and share their data from one of their accounts for some specific purpose to a new lender or financial institution at the stage of giving ‘consent’ via one of the Account Aggregators. Hence statement 2 is correct. 
  • Account Aggregator empowers the individual with control over their personal financial data, which otherwise remains in silos. The Account Aggregator system can make lending and wealth management a lot faster and cheaper.
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India recently unveiled the Account Aggregator network. In this context, consider the following statements: Account Aggregators are RBI regulated entities sharing digitally signed and encrypted data. Registering with an Account Aggregator is fully voluntary for consumers. The Account Aggregators can read and resell the consumer data.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3 .Correct answer is option 'A'. Can you explain this answer?
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