Through account aggregator, you can now get loans from banks without any hassle. Detailed information about the account aggregator is given in the Frequently Asked Questions (FAQs) by the Ministry of Finance.
What has been said: The recently introduced Account Aggregator (AA) could revolutionize the investment and credit space, giving millions of consumers easy access and control of their financial records. This initiative will also lead to a huge increase in customer base for the lenders and fintech companies.
Launched with eight banks: The account aggregator system in banking has been introduced with eight largest banks in the country. Account aggregator system can make loan and money management very fast and economical. There will be multiple account aggregators offering such a facility and the consumer can choose whichever one he wants.
The Finance Ministry said that now there will be no need to give your financial details to any third party for this. For this the bank only needs to be connected to the account aggregator network. Eight banks are already sharing data on a consent basis. Four of these banks – Axis Bank, ICICI Bank, HDFC Bank and IndusInd Bank have started this facility. Apart from this, four banks – State Bank of India, Kotak Mahindra Bank, IDFC First Bank and Federal Bank are going to start this facility soon.
These are also the advantages: Aadhaar eKYC and CKYC only share identity based information like name, address, gender etc. Similarly, credit bureau data only shows loan history and credit score. On the other hand, the account aggregator network will enable sharing of transaction information from savings, deposit or current accounts.
