Of late there has been a lot of buzz around what’s known as the Account Aggregator ecosystem or framework. It’s a form of ‘open banking’ that has emerged with the blessings of the RBI and, according to analysts, could transform the financial services industry by making it easy for consumers to give their consent to sharing their personal financial data with different service providers. Although it’s still early days, there are about ten Account Aggregators in operation, with an estimated 7.7 million citizen accounts linked with the various account aggregators.
In Part 1 of this podcast, we looked at what Account Aggregators are, what led to their emergence, and how they work. In the second part of this two-part podcast, we look at how the account aggregator framework will deal with data privacy aspects such as purpose limitation and duration of consent validity, potential for exclusion due to algorithmic credit allocation, regulatory mechanisms for grievance redressal.