RBI Invites applications for recognition of Self-Regulatory Organisation(s)

• 12 Mar 2025
• 487 Views

The Reserve Bank of India (RBI) introduced the Account Aggregator (AA) framework in September 2016 to enable the secure and smooth sharing of financial data.

The AA framework works through Non-Banking Financial Company-Account Aggregators (NBFC-AAs), which act as middlemen between:

• Financial Information Providers (FIPs) – Banks, insurers, pension funds, and other financial institutions that hold user data.
• Financial Information Users (FI-Us) – Entities that need financial data to provide services (e.g., banks, lenders, or wealth managers).

These FIPs and FI-Us are regulated by various financial authorities, including RBI, SEBI, IRDAI, PFRDA, and the Department of Revenue for GST-related data.

Need for a Self-Regulatory Organization (SRO)

• The AA system is complex, involving multiple financial entities under different regulations.
• To ensure smooth functioning, a Self-Regulatory Organization for Account Aggregators (SRO-AA) is required.
• This SRO-AA will help with:
  • Dispute resolution
  • Standardized agreements
  • Common services and operational coordination

RBI's New Framework for SRO-AA

• The Department of Regulation, RBI has released the "Framework for Recognizing SRO-AA", which outlines:
  • Eligibility criteria
  • Responsibilities
  • Governance rules for the SRO-AA

Application Process

• RBI is now inviting applications for SRO-AA recognition through the PRAVAAH portal.
• The deadline for submission is June 15, 2025.
• Applications must meet all guidelines mentioned in the SRO-AA Framework.
• RBI’s decision on recognition will be final.

Important Clarifications

• The SRO-AA will operate under the AA regulatory framework set by RBI.
• Technical specifications for the system will continue to be managed by ReBIT (Reserve Bank Information Technology Private Limited).