#Sahamati Account Aggregator

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There are differences between UPI and Account Aggregator

Imagine having a central platform to look up your financial assets information for all of your account savings, fixed deposit and investment plans and pension savings, insurance premiums and more, all at the same time. There is no need to log and downloading financial information from different platforms, simple access, and a single view of your financial situation,

Because of the Bank Account Aggregator framework this framework is no longer restricted to the realms of imagination

The idea for Account Aggregator was conceived through the Reserve Bank of India to make it easier to access and share of financial information. In simpler terms, it acts as a "data bridge" between different participants in the financial industry.

The Account Aggregator framework is changing the method by which financial data is distributed. According to experts, it is likely to be a replica of the enormous UPI's success. UPI.

There is plenty of common ground among UPI as well as Account Aggregator it's important to understand what the distinction is since these differing concepts solve distinct issues.

This blog is designed to assist you to understand the differences between Account Aggregator and UPI.

What exactly is UPI and what are the problems UPI address?

Unified Payment Interface (UPI) is a mobile-based electronic payments system that allows you to transfer funds from bank accounts using a your mobile phones.

One of the most important benefits that comes with UPI payment is that it allows immediate real-time transactions without disclosing the bank's details. This creates a safe swift, simple and easy payment method. You don't have for carrying cash debit card or credit card. This makes it easier to make transactions while on the move.

The benefits of UPI isn't limited to transferring money between accounts. Through UPI the ability to seamlessly pay for your utilities or recharge your mobile phone. You can also perform quick and secure transactions via e-commerce platforms and pay for insurance premiums make investments in mutual funds as well as facilitate transactions using barcodes. There are numerous possibilities and this makes UPI an incredibly flexible and well-loved payment option for a wide range of applications.

What is Account Aggregator? how does it help solve problems?

Account Aggregator was created through the Reserve Bank of India (RBI) in order to make it easier for information exchange across Financial Information Providers (FIPs) as well as Financial Information Users (FIUs) with the consent of the customer.

Account Aggregator lets you easily access and examine the financial data from various sources like account balances, stocks and tax information, insurance policies specific to investments and many more in one screen. This comprehensive view of financial assets makes it easier to manage of financial assets and allows better-informed decision making.

Account aggregation also allows the secure exchange of financial data with financial institutions. This makes it simpler to join and transact with, as well as combine a variety of financial services. Use cases for Account Aggregator are vast ranging from getting loan or collaborating with wealth management professionals to organize and improve investment portfolios, and detecting potential fraud risks and reducing risk

The difference between UPI and Account Aggregator are stark.

Integration with financial institutions from other countries

UPI is a quick payment method that allows money transfers between two accounts. This means that its infrastructure is only connected to banks. However Account Aggregator provides an even greater scope since its use and impact can be extended to all financial institutions as well as all four regulatory bodies.

The focus area

Both UPI as well as Account Aggregator are both digital public infrastructures, this is the point where simjlarity ceases.. UPI is primarily concerned with the 'transfer of funds', whereas Account Aggregator is specifically focused on the transfer of financial information'.

The UPI infrastructure connects only to banks. AA connects every financial institution, including Banks as well as NBFCs, insurance companies, broking businesses, CRAs and more which makes it much more broad in terms of application and scope.

Authority to govern

National Payments Corporation of India (NPCI) is a not-for-profit organization established through the Government of India regulates UPI transactions. It also sets the standards and guidelines that govern how the system is used. NPCI assures the security as well as security for UPI transactions in addition to promoting the expansion and use of electronic payments across India. In contrast, Account Aggregator is an authorized by the RBI, and is expected to conform to various rules and rules which the RBI established to encourage responsible and fair behavior. Regulations of the RBI ensure the privacy and security of the customers is protected, and ensure that banks are committed to ethical lending policies. Sahamati additionally plays an important function in strengthening and promoting the ecosystem of Account Aggregators. Sahamati is an alliance of industry that functions as a self-organized organization in order to help facilitate coordination between all the players of the Account Aggregator community. The alliance establishes the fundamental rules and an ethical code to the entire community.

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Criteria for Choosing an Account Aggregator in 2022

Think about needing a modest loan but being turned down by traditional lenders like banks because of a lack of credit. Imagine a lending app that takes into account how reliably you pay your bills and make loans accordingly.

Government officials have introduced a new financial data-sharing system called the "Account Aggregators" (AA) network that has the potential to revolutionise the investment and lending sectors of the economy.

Consider these criteria while making your decision on which aggregator to use:

Pricing

Bank statement access fees and consent management/control dashboard fees are the two main costs that FIUs face when attempting to get bank records. Since most companies look at a large sample of customers' bank statements, the amount of requests is likely to be considerable. As a result, check to see whether your AA's prices are reasonable.

To achieve the best possible rate, it's best to work with a Sahamati-approved Technology Service Provider (TSP), which has connections to the vast majority of active account aggregation apps. Your AA experience is about to become a streamlined one at an affordable price and with industry-leading service quality.

Integrating Timelines

Select an aggregator that can provide a smooth integration within your desired time frame. Having worked with a significant variety of financial institutions, various firms are familiar with the requirements of AA. With the help of the learning curve, you will get very rapid integration for businesses that are interested in joining the AA network.

Indemnification of other AAs

Verify that your account aggregation apps provide interoperable solutions and that consumers who have already registered with other AAs are not required to re-register on your platform. It will hurt your company's reputation and bottom line.

Take into account the following scenario: you run a lending company in conjunction with "Account Aggregator X," and you have a client who has previously utilised "Account Aggregator Y" to exchange bank statements. Make sure the consumer is not required to repeat any of the steps by logging in and giving their consent.

Services with Extra Value

Obtaining the unprocessed XML version of your bank statement may not be the best option for your company. In order to decipher those bank statements and draw useful conclusions from them, you'll need to use the whole gamut of available technologies. Consequently, you should ensure that you are receiving all the answers in one convenient location.

Group That Can Help

It's crucial to have access to a specialised support staff that can assist you with any issues that may arise. Various firms can meet your specific requirements and provide solid underpinnings in the face of any challenge or help you may need.

So Here's the Deal

Account Aggregators provide you with the ability to get financial data about your customer rapidly by centralising all the data in one place and delivering a single digital framework to interchange it in real-time.

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Union Bank of India becomes the first Public Sector Bank to join the Account Aggregator Ecosystem

The Account Aggregator Ecosystem framework went live in Sept 2021. The ecosystem helps lenders to leverage on digital data acquired by taking consent from the customers, providing them a seamless journey, and eliminating the need of physical documentation.

FIU (Financial Information User) can request for data from the FIP (Financial Information User) based on a simple consent given by the customer on their Account Aggregator handle.

It is a defining moment for the AA ecosystem as Union Bank of India became the First Public Sector Bank to Go live on the Account Aggregator Framework. Union Bank will be both FIP (Financial Information Provider) and FIU (Financial Information Provider) enabling its customers to share data digitally on a real time basis.

Union Bank of India has partnered with Perfios Software Solutions Pvt. Ltd., a Sahamati empanelled TSP, to implement a full-stack solution for Financial Information Providers (FIP) and Financial Information Users (FIU) as per the ReBIT guidelines on the bank's premises.  

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Union Bank of India becomes the first Public Sector Bank to join the Account Aggregator Ecosystem

The Account Aggregator Ecosystem framework went live in Sept 2021. The ecosystem helps lenders to leverage on digital data acquired by taking consent from the customers, providing them a seamless journey, and eliminating the need of physical documentation.

FIU (Financial Information User) can request for data from the FIP (Financial Information User) based on a simple consent given by the customer on their Account Aggregator handle.

It is a defining moment for the AA ecosystem as Union Bank of India became the First Public Sector Bank to Go live on the Account Aggregator Framework. Union Bank will be both FIP (Financial Information Provider) and FIU (Financial Information Provider) enabling its customers to share data digitally on a real time basis.

Union Bank of India has partnered with Perfios Software Solutions Pvt. Ltd., a Sahamati empanelled TSP, to implement a full-stack solution for Financial Information Providers (FIP) and Financial Information Users (FIU) as per the ReBIT guidelines on the bank's premises.  

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Union Bank of India becomes the first Public Sector Bank to join the Account Aggregator Ecosystem

The Account Aggregator Ecosystem structure went live in Sept 2021. The environment assists loan specialists with utilizing on computerized information gained by taking assent from the clients, giving them a consistent excursion, and killing the need of actual documentation.

FIU (Financial Information User) can demand for information from the FIP (Financial Information User) in light of a straightforward assent given by the client on their Account Aggregator handle.

It is a pivotal turning point for the AA environment as Union Bank of India turned into the First Public Sector Bank to Go live on the Account Aggregator Framework. Association Bank will be both FIP (Financial Information Provider) and FIU (Financial Information Provider) empowering its clients to share information carefully on an ongoing premise.

Association Bank of India has banded together with Perfios Software Solutions Pvt. Ltd., a Sahamati empanelled TSP, to carry out a full-stack answer for Financial Information Providers (FIP) and Financial Information Users (FIU) according to the ReBIT rules on the bank's premises....READ MORE