Unlock insights into obtaining an Account Aggregator License with our comprehensive guide. Navigate regulations, requirements, and essential steps effortlessly.

1. GUIDE ON ACCOUNT
AGGREGATOR LICENSE

2. POINTS FOR DISCUSSION
What are Account Aggregators?
Which banks have joined AA network?
How do Account Aggregators work?
What is the Importance of NBFC-AA?
Benefits of Account aggregator license?
Process of Obtaining NBFC Account Aggregator License
Duties & Responsibilities of NBFC Account Aggregators
When can the NBFC AA License be revoked?
Norms for Data Security by NBFC-AA (NBFC Account Aggregator)
TOPIC
OUTLINE

3. Foreword
Account Aggregator (AA) network, a financial data-sharing system that would revolutionize investing
and credit, giving millions of consumers greater access and control over their financial records and
expanding the potential pool of customers for lenders and fintech companies. Account Aggregator
empowers the individual with control over their personal financial data, which otherwise remains in
silos.
This is the first step towards bringing open banking in India and empowering millions of customers to
digitally access and share their financial data across institutions in a secure and efficient manner.
The Account Aggregator system in banking has been started off with eight of the India’s largest banks.
The Account Aggregator system can make lending and wealth management a lot faster and cheaper.
In this guide we'll be covering various aspects of account aggregator license

4. WHAT ARE ACCOUNT AGGREGATORS?
The Account Aggregator framework, introduced by the RBI, aims
to make financial data more accessible by creating data
intermediaries called Account Aggregators (AA) which will collect
and share the user’s financial information from a range of entities
that hold consumer data called Financial Information Providers
(FIPs) to a range of entities that are requesting consumer data
called Financial Information Users (FIUs) after obtaining the
consent of the consumer.

5. WHICH BANKS HAVE
JOINED AA NETWORK?
8
Banks have
jOined the
AA NetwOrk
Axis
ICICI
HDFC
IndusInd
State Bank
Kotak Mahindra
IDFC
Federal

6. 1. The FIU (the lender) will request the AA to share the desired financial information.
2. The AA will request the user for their consent to share financial information with the FIU .
The Account Aggregator must interact with the customer using either a web-based or a
mobile app-based client.
3. If the user consents, the AA will request the FIP (the User’s bank in this case) to share the
financial information.
4. The FIP will transfer the information, which will be encrypted, to the AA, which will then
transfer it to the FIU.
HOW DO ACCOUNT
AGGREGATORS WORK?

7. Lenders: NBFCs
Robo Advisors
Financial Services
2. Consent to
Share Data
Bank
Tax/ GST Platform
Government E-Marketplace
Mutual Fund House
Insurance Provider
3. Request
for data
CONSENT
MANAGER
Account
Aggregator
4. Encrypted Data Flow
based on User consent
1. Request
for data
Lenders: Banks
Personal Finance
Management
Regulated Financial
Information Users
Regulated Financial
Information Providers

8. 1
Various kinds of
Bank deposits 5 Debentures
9
Deposits with
NBFC’s 13 Mutual Fund units
2 SIP 6 Collective Investment
Scheme 10
Commercial
Paper 14
Indian Depository
Receipts
3
Certificate of
Deposit 7
Infrastructure
Investment Trust units 11
Tradable Government
Securities 15
Alternative
Investment Funds
4 Equity Shares
8
Real Estate Investment
Trust 12 Bonds 16 Balance under the
National Pension System
WHAT CONSTITUTES
FINANCIAL INFORMATION?
As per the master directions of RBI-DNBR, financial information shall include:

9. The financial information of the users will be available at a
common platform in a standard format, thereby increasing
uniformity and transparency of the data.
The provision of financial information is solely dependent on
user’s consent. There are usually proper agreements between
the customer, aggregator and the financial service provider.
This helps to prevent information-abuse.
The information provided by NBFC-AA is a reliable since it is
bound by the terms and conditions of the License that includes
customer protection, corporate governance, risk management,
data security, grievance redressal and audit control.
The role of NBFC-AA is limited to Account Aggregation only.
However, deployment of investible surplus in investments will
be permitted provided the same is not for the purpose of
trading.
What is the Importance
of NBFC-AA?

10. HOW WILL THE NEW ACCOUNT AGGREGATOR NETWORK
IMPROVE AN AVERAGE PERSON'S FINANCIAL LIFE?
India's financial system involves many hassles for consumers today -- sharing physical signed and
scanned copies of bank statements, running around to notarise or stamp documents, or having to
share your personal username and password to give your financial history to a third party. The
Account Aggregator network would replace all these with a simple, mobile-based, simple, and
safe digital data access & sharing process. This will create opportunities for new kinds of
services -- eg new types of loans.

11. Ensures smooth flow of
credit information
Helps in reducing verification
time for lenders hence increases
efficiency
Operational
advantage
Serving clients
becomes easy
Reduces the risk
of bad loans
BENEFITS OF ACCOUNT AGGREGATOR
LICENSE

12. PROCESS OF OBTAINING NBFC
ACCOUNT AGGREGATOR LICENSE
1 The first step is to get company registration as per Companies Act, 2013.
2 The company must have the necessary resources to offer such type of services
3 The company needs to make an application to the RBI Department of Non-Banking Regulation, in Mumbai.Such application should be in
the form as provided under Annex 1 (Master Direction).
On examining the eligibility requirements if the RBI is satisfied that the company has the necessary resources and wherewithal,
adequate capital structure, fit and proper promoters, leverage ratio of not more than 7, then the RBI shall grant in-principle approval.
The in-principle approval will be valid for a period of 12 months and within that period the company is required to put in place
technology platform, enter into other documentations and also report position of compliance with the terms of in-principle approval to
the bank.
6 Finally the RBI shall grant a certificate of registration as NBFC AA after being satisfied that the company can commence operations and
is in compliance with the requirements of registration.
4
5

13. Applicant Company
PAN Card of Company
COI,MOA and AOA
Company Identification Information
Provisional Balance Sheet
Statement of Fund
Board Resolution in respect of
carrying activities of NBFC-AA
Declaration for IT Technology System
Details of Shareholding Pattern of
the applicant company
Details of Directorship in the
Company
Fixed Deposit Receipts in relation to
NOF
Banker report in respect of current
Account
Director
Information about the proposed
director of the Company
Convent Deed
Identity/Address proof
Business Profile
Highest Qualifications Certificate
Experience Certificate
CIBIL Report
Bankers Report
DOCUMENTS REQUIRED
Shareholder
PAN
COI
MOA
AOA
Audited Financial
Credit Report
Banker Report

14. WHEN CAN
THE NBFC AA
LICENSE BE
REVOKED?
The company closes account aggregators’business;
Where the company is unable to satisfy any
condition to which the certificate of registration
has been issued
In case where the bank feels that the company
can no longer hold COR
In case where the bank feels that the company
can no longer hold COR
Where the company fails to maintain accounts or
issue information or disclose information as
required by banks
Where the company fails to submit its books of
accounts or other documents for assessment
purposes.

15. Envisage methods of
proper customer
Protection of
customer’s rights
Duties & Responsibilities of NBFC Account Aggregators
identification
Obtain in principal
approval to render such
activities
Obtain customer consent
Ensure that no information
is retrieved and transferred
without obtaining the proper
consent of the customer.
Safeguard financial
information of customers

16. NORMS FOR DATA SECURITY BY NBFC-AA
(NBFC ACCOUNT AGGREGATOR)
It is mandatory for NBFC-AA to have
proper IT infrastructure as they carry
a lot of financial information of
various customers. These types of
entities shall be solely responsible for
the safe storage & transfer of data
from financial information providers
to financial information users. They
would also have to ensure that
customer credentials cannot be
retrieved or stored in their system.
Protection from unauthorized access, alteration,
destruction, disclosure, or dissemination of records and
date
Use the technology platform in relation to keep financial
information;
Take necessary action for risk management
Timely Information System Audit by CISA certified
external auditor
Directions
1
2
3
4

17. GET YOUR AA LICENSE REGISTRATION DONE WITH
ENTERSLICE
Fill The Form Get a Callback
Submit Document Get Deliverables
Track Progress

18. HEAD OFFICE ADDRESS
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Pradesh
EMAIL ADDRESS
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PHONE NUMBER
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TO
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EXPERTS

19. Prepared by
G A N E S H N A I R
Legal Researcher, R&D