After several banks introduced Account Aggregator in their banking systems, PhonePe Group also launched its Account Aggregator (AA) services today (June 6) through its wholly owned subsidiary, PhonePe Technology Services Pvt Ltd (PTSPL).
Ahead of the launch, PhonePe Technology Services Pvt Ltd (PTSPL) has integrated with multiple Financial Information Providers (FIP) such as YES Bank, Federal Bank, AU Small Finance Bank, etc. PTSPL is in the process of integrating with regulated Financial Institutions (FIUs) so that they can start taking consent from their users to do a real-time data fetch from the Financial Information Provider (FIP).
An Account Aggregator (AA) is a type of RBI-regulated entity (with an NBFC-AA licence) 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.
Account aggregation, also known as financial data aggregation, is a method that involves compiling information from different accounts, which may include bank accounts, credit card accounts, investment accounts, and other consumer or business accounts, into a single place.
In the first week of September 2021, the finance ministry said eight of India’s largest banks had introduced the system, even though its concept was approved by the RBI in 2016.