Mumbai: Fonepe belongs to Walmart has said that his fully owned subsidiary has received the principle approval to operate as an account aggregator.
The RBI has introduced the concept of account aggregator, or AA, in 2016.
This allows a set of financial entities to obtain customer information that lives with another set through the AA platform, after the customer provides approval.
This increases the availability of financial services and competition because customers are no longer related to one provider.
The entity where the customer has held an account is the financial information provider (FIPS) and they can become banks, insurance companies and mutual funds.
The GST department is also expected to participate as FIP.
These entities can also act as users of financial information (Fius).
According to ‘Sahmati’, collective AA system, the aggregator acts as a channel between fius and FIPS and does not process data.
Aa is ‘blind data’ as information that flows through it is encrypted and can only be processed by FIU whose data is intended.
Also, AA does not and cannot store any user data.
Thus, the potential leakage and misuse of user data is prevented.
Commenting on Development, Phoneeep CTO & Co-Founder Rahul Chari, “Our AA Stack Technology will enable FIU to instantly take financial information with customer approval from FIP.
We look forward to working with all industrial stakeholders to advance the RBI’s vision about riding financial inclusion deeper throughout the country.
“Another entity that has received AA licenses from RBI is Cookiejar technology, Finsec AA Technologies, NESL asset data, and CamsFinserv.