Explained: What is an Account Aggregator? Here’s how getting personal loan will become easier than before

An account aggregator is a system or entity that comes under the purview of the Reserve Bank of India (RBI). This entity comes with an NBFC-AA license.

Suppose you need a small loan, which banks and other financial institutions are unwilling to offer for lack of credit history. In that scenario, imagine a fintech app that checks your timely bill payments and offers you a loan on the basis of that.  The government has launched a new financial data sharing system known as the ‘Account Aggregators’ (AA) network which has the potential of changing the face of the financial data sharing system in the country with regard to investment and credit. This is the first step towards bringing open banking in India and empowering millions of customers to digitally access and share their financial data across institutions in a secure and efficient manner, it said.