Economics • Banking & FinanceMedium
What does the 'Account Aggregator (AA)' framework, introduced within the Indian financial sector, primarily aim to achieve?
A. To consolidate all non-performing assets of public sector banks into a single centralized bad bank
B. To enable secure, consent-based digital sharing of financial data between financial information providers and financial information users✓ Correct Answer
C. To merge regional rural banks with major public sector commercial banks to enhance capital adequacy ratios
D. To standardize the marginal cost of funds based lending rates across all scheduled cooperative banks
💡 Solution & Explanation
The Account Aggregator framework operates as a non-banking financial company model regulated by the Reserve Bank of India to allow seamless and secure sharing of financial data with explicit user consent. Unlike centralized bad banks or interest rate standardization measures, this digital architecture bridges financial information providers and users to enhance credit accessibility. This framework falls under the purview of the Non-Banking Financial Company aggregator directions.
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