Account Aggregator system can democratise credit, bolster lending ecosystem

An AA enables a free and instant exchange of financial data between FIUs and FIPs with the consent of customers

If the Unified Payments Interface (UPI) changed the way payments are done, the Account Aggregators (AA) system, launched on Thursday, may transform how credit is processed and accessed in the country.

Account aggregators can bolster the lending ecosystem in the country, which can make India data-rich and also boost the digital economy, said M Rajeshwar Rao, deputy governor, Reserve Bank of India (RBI).

Speaking at the Account Aggregator Go-Live event, Rao said the desired objective in the case of this ecosystem would be attained when a large number of customers and information providers are on-boarded, and they are able to