Economics • Banking & FinanceMedium
What is the primary objective of the 'Account Aggregator' framework regulated by the Reserve Bank of India?
A. To merge multiple regional rural banks into a single state-level public sector bank.
B. To enable seamless, secure, and explicit consent-based sharing of financial data across financial institutions.✓ Correct Answer
C. To aggregate non-performing assets of all public sector banks under a single asset reconstruction company.
D. To pool foreign exchange reserves from various commercial banks into the central bank.
💡 Solution & Explanation
The Account Aggregator framework, regulated by the Reserve Bank of India, functions as a consent-based digital infrastructure allowing individuals to securely share their financial information across diverse institutional entities. By eliminating physical paperwork and proprietary data silos, it empowers consumers with complete control over their personal financial records. Alternative choices regarding regional rural bank mergers or asset reconstruction do not reflect this data-sharing protocol.
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