The Reserve Bank of India (RBI) says that it will devise a regulatory mechanism for a non-banking finance company (NBFC) which will function as an account aggregator to help citizens access and operate all their accounts across financial institutions in a common format.
An account aggregator such as this will help, for example, seamless transfer of funds from say a fixed deposit held with one back into a pension scheme. “In its board meet, the RBI has obtained some clarity over what kind of regulatory mechanism can be set up to offer this service. The RBI has found a clause to actionalise this concept,” RBI Governor Raghuram Rajan told reporters as indicated by this Economic Times report.
The RBI added in a release that he idea of such an NBFC had emanated from the Financial Stability and Development Council (FSDC). RBI deputy Governor SS Mundra also proposed recommencing the recommence the Financial Inclusion Advisory Committee (FIAC) to take the financial inclusion agenda forward in light of Prime Minister Narendra Modi’s focus on Jan Dhan accounts, Aadhar identity and Mobile phones (JAM) as iterated during the Digital India Week.
Other moves by the RBI
– In March, RBI eased the norms for payments made using NFC-based or contactless cards and said that transactions below Rs 2,000 will not need a additional factor of authentication. The additional factor of authentication the RBI had earlier mandated was entering a PIN or an one-time password.
– In November 2014, RBI expanded the eligibility criteria for individuals and entities to be appointed as Business Correspondents (BC) of regional rural banks (RRB).
– In May 2014, the apex bank put on hold its decision to make Aadhaar-based biometric authentication for transactions mandatory. In an earlier circular, RBI had given banks an option to start using EMV chips and pin or shift to Aadhaar, as additional factors of authentication to secure the present payment infrastructure. The circular followed a recommendation by a working group on Securing Card Present Transactions in 2011.