The Account Aggregator (AA) ecosystem has got a major boost as all the public sector banks (PSU banks) in the country have onboarded the platform, according to a tweet by Sahamati, a non-profit collective of the framework, bringing over 1 billion accounts on the AA framework.
While many private sector and some public sector banks had gone live on the AA framework, some of India’s largest PSU banks including State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB) and Indian Bank among others, were yet to onboard the platform until July. Finance minister Nirmala Sitharaman had reportedly instructed these banks to go live on the AA framework by end of July.
The participation of major PSU banks is key to the success of AA’s framework as it will open a window for a huge pool of the banks’ customers to use the framework and allow easy access to financial services. Today, these PSU banks cater to a large chunk of India’s population.
In January, Moneycontrol reported that SBI was working on a pricing model because the bank wants to be compensated as it will be the largest information provider. The bank was also working on the infrastructure needed to manage and share the huge pool of data it possesses as the data is supposed to be accessed from its core banking system, which will require additional levels of security and audits.
Source : https://www.moneycontrol.com/news/business/mutual-funds/account-aggregator-ecosystem-gets-a-boost-as-all-psu-banks-go-live-8940701.html