(THE NEWSMAN OF INDIA.COM)
The Reserve Bank of India (RBI) has issued a new framework inviting applications for the recognition of a Self-Regulatory Organisation (SRO) to oversee the growing Account Aggregator (AA) ecosystem. The AA framework, introduced by RBI in September 2016, facilitates the secure and seamless exchange of financial information through Non-Banking Financial Company-Account Aggregators (NBFC-AAs), which serve as intermediaries between Financial Information Providers (FIPs) and Financial Information Users (FI-Us).

The AA ecosystem is complex, involving a wide range of regulated entities operating under various financial sector regulators, such as the RBI, the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development Authority (PFRDA), and the Department of Revenue. The complexity of the system demands close coordination to address operational challenges, such as dispute resolution, standardizing agreements, and providing common services.

To help manage these complexities and promote smoother adoption of the AA framework, the RBI has called for the creation of a dedicated Self-Regulatory Organisation for the AA ecosystem, or SRO-AA. This SRO will work to address the operational issues faced by the ecosystem and help it stabilize and function more effectively.

On March 12, 2025, the Department of Regulation, RBI, released the “Framework for Recognising Self-Regulatory Organisation(s) for the Account Aggregator Ecosystem (SRO-AA).” This document outlines the eligibility criteria, governance aspects, and responsibilities of the proposed SRO.

The RBI has invited applications for the recognition of an SRO-AA under this framework. Interested parties are encouraged to submit their applications through the PRAVAAH portal by June 15, 2025. The applications must adhere to the guidelines set forth in the SRO-AA framework, with incomplete applications being disqualified.

The decision to grant recognition will be made based on a review of all eligible applications submitted before the deadline. The RBI has clarified that the decision regarding the recognition of the SRO-AA will be final. Additionally, it is noted that while the SRO will play a critical role in overseeing the ecosystem, the technical specifications for the AA ecosystem will continue to be developed and published by the Reserve Bank Information Technology Private Limited (ReBIT).

This move aims to streamline the functioning of the AA ecosystem and ensure its smooth operation in the financial services sector.