Economics • Banking & FinanceHard
In the context of the Indian banking sector, what is the primary regulatory objective of introducing 'Account Aggregators'?
A. To enable seamless and secure sharing of financial data of customers across regulated entities with explicit user consent✓ Correct Answer
B. To consolidate all public sector commercial banks into four mega financial conglomerates
C. To act as a centralized debt recovery tribunal for settling retail loan defaults across scheduled banks
D. To audit the digital payment gateways of non-banking financial companies for cybersecurity compliance
💡 Solution & Explanation
Account Aggregators are non-banking financial companies licensed to enable seamless, encrypted, and consent-based sharing of financial data across different financial institutions for consumers. Distractors incorrectly describe bank consolidation mergers, debt tribunals, or cybersecurity audit agencies. This framework empowers individuals to access financial services easily by leveraging their digital footprint across lenders and insurers. The Reserve Bank-Information Technology framework governs their data privacy standards.
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