On 19-08-2022, SEBI has issued a circular on participation of financial account aggregators in Account Aggregator framework. The Account Aggregators (AAs) framework is introduced by the Reserve Bank of India (RBI) for the easy availability of information and data as required. Account Aggregators (non-banking financial companies) are the one who collect and share data in the securities market.
Key points:
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Information transferred by the AAs will be encrypted and will not be stored by them.
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Information shared by the AAs will only be for the use of customers and FIUs and with the consent of the customer.
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The Asset Management Companies through their Registrar and Transfer Agents (RTA)and the Depositors will be considered as FIPs in the market.
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Financial Information Providers (FIPs) will only provide the financial information to Financial Information User (FIUs) when the customer digitally gives the valid consent through any of the Account Aggregators registered under RBI.
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Further the FIPs will enter into a contract with AAs, in which it shall mention the rights and obligations of each party and any modification if required for the resolution of dispute.
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FIPs will share the financial information through AAs after receiving the receipt of the valid consent artefact.
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FIPs need to check the validity of consent, specified date and authenticity of the AAs before sharing any financial information.
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After the verification of the consent, FIPs need to digitally sign the financial information before handing it over to the AA.
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FIPs are required to establish means for the verification of consent.
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Technical usage of the FIPs should be updated on a regular basis to maintain the authenticity and unobstructed flow of data. There should be measures to recover data if required by the RBI in future.
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Information present under FIPs should be protected from unauthorized access, destruction, disclosure of any kind of data.
