IndusInd Bank goes live on RBI’s Account Aggregator Framework

By Edil Corneille

Gurgaon-based IndusInd Bank has apprised that it has gone live as a Financial Information Provider (FIP) under the new Account Aggregator Framework of the Reserve Bank of India (RBI), the country’s central bank.

Taking a step towards India’s entry into the world of open banking, RBI first announced the Account Aggregator (AA) framework via a Master Directive in June 2016. The initiative aims at enabling individuals as well as small and mid-sized businesses to avail of better financial services. Customers can view statements of their accounts, track deposits, plan investments (such as shares, mutual funds, Insurance, EPF, PPF), get credit cards, etc., on a single window.

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As an FIP, IndusInd Bank will facilitate the sharing of financial information by customers with Financial Information Users (FIUs) on the Account Aggregator Ecosystem in a secure manner after the consent is received from the customer. When the other financial institutions go live on the AA framework, it will eliminate the need for collecting/ submitting physical documents for getting loans or accessing other financial products and services.

Soumitra Sen, Head – Consumer Banking, IndusInd Bank, IndusInd Bank said, “…The Account Aggregator framework is an important step towards that direction which will empower the customer to view as well as choose their preferred product & service from banks and other participating players. We are happy to collaborate with the DigiSahamati Foundation in this exciting journey and look forward to contributing to the vision in a significant way…”

BG Mahesh, Co-Founder, DigiSahamati Foundation stated, “It’s no surprise that IndusInd has led the way in adopting the Account Aggregator Framework – they saw the game-changing ability of AA framework to India’s financial services market early on and led the industry with that conviction. As an early mover in this space, they have the opportunity to bring diverse and innovative products to market.”

The Account Aggregator system enables individuals and SME customers to share their financial information digitally with regulated financial institutions like banks, NBFCs, among others, within a secure framework.

IndusInd Bank commenced operations in 1994. Its technology platform supports multi-channel delivery capabilities. As of June 30, 2020, the bank has 1,911 branches/ banking outlets and 2,721 ATMs spread across 751 geographical locations in India. The bank has representative offices in London, Dubai, and Abu Dhabi. IndusInd Bank was included in the NIFTY 50 benchmark index on April 1, 2013.

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