New Delhi. With the help of the recently introduced account aggregator, by sharing financial information digitally to financial institutions, common people and small businesses can get loans from banks without any hassle. The Finance Ministry’s frequently asked questions (FAQs) on account aggregators said that the financial data-sharing system – Account Aggregator (AA) introduced last week can revolutionize the investment and credit sector and help millions Consumers can get easy access and control to their financial records. According to the FAQ, this initiative will also lead to a huge increase in the number of customers for the lender and fintech companies.
Account aggregator system has been introduced with big banks
Account aggregator system in banking has been started with the eight largest banks of the country. Account aggregator system can make loan and money management very fast and economical. There will be many account aggregators offering such facility and the consumer can choose whichever one he/she wants. The Finance Ministry said that sharing of physically signed and scanned copies of bank account details, getting documents signed or stamped by a notary or account aggregators in exchange for the hassles that may arise while giving your financial statements to a third party. The network ensures access to digital information in a simple, mobile-based and secure manner for them.
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These banks have started this facility
For this the bank only needs to be connected to the account aggregator network. Eight banks are already sharing data on the basis of consent. Four of these banks – Axis Bank, ICICI Bank, HDFC Bank and IndusInd Bank have started this facility. Apart from this, four banks – State Bank of India, Kotak Mahindra Bank, IDFC First Bank and Federal Bank are going to start this facility soon. Aadhaar eKYC and CKYC only share identity based information like name, address, gender etc. Similarly, the credit bureau data shows only loan history and credit score. Account aggregator network, on the other hand, would allow sharing of transaction information from savings, deposit or current accounts.
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