 "PhonePe returns NBFC-AA licence, will partner with other AAs in market")
PhonePe Group has decided to exit the Account Aggregator (AA) sector and will collaborate with other AAs to further promote financial inclusion. The company has begun the process of returning its NBFC-AA licence to the Reserve Bank of India (RBI) and will gradually shut down its AA operations.
The service enabled users to securely share their financial data, such as bank statements, insurance policies, and tax records, with regulated Financial Information Users (FIUs) for purposes like loan applications, insurance purchases, and investment advisory services.
It had integrated the AA service into its consumer app, allowing users to create an interoperable AA handle and access bank statements through the “check balance” feature at no cost.
In an official statement, the company said, “We have decided to surrender our NBFC-AA licence to the RBI, and initiated the wind down of our AA operations. We will be reaching out to our AA user base shortly to inform them of our decision, and help them as per regulatory guidelines.”
PhonePe’s AA platform claims to have onboarded nearly 50 million users in India.
“However, due to competing priorities, we have not been able to onboard as many financial information providers (FIPs) to our platform as we would have liked,” it further said.