The Pensions Regulatory Authority has approved the CRAs to act as financial information providers (FIPs) and to share the NPS data with financial information users (lenders, including banks and NBFCs; wealth management and personal finance service providers) through AAs.
Currently, NSDL e-Governance Infrastructure Limited and KFin Technologies Private Limited have been appointed by PFRDA as CRAs for NPS. The agency approved a new CRA in March of this year. It is to be administered by CAMS, India’s largest mutual fund registrar and transfer agency.
The first agreement between CAMS CRA and the Account Aggregator will be ready by the end of this month. “By the end of December, we expect all three rating agencies to have agreements with all licensed AAs,” PFRDA sources said, according to the report.
Under PFRDA’s new initiative, investors will most likely benefit from ease of lending and money management.
In addition, the initiative could give a boost to the AA framework expected to revolutionize investing and credit, give millions of consumers better access to and control over their financial records, and expand the potential customer base for lenders and fintech companies.
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What is an AA?
An Account Aggregator (AA) is a type of RBI-regulated entity (with an NBFC-AA license) that helps an individual securely and digitally access information from a financial institution with which they have an account and compare it with a other regulated financial institution in the AA to share network. Data may not be shared without the consent of the individual.
Bank transaction data is already available (e.g. bank statements from a checking or savings account) between the banks that have gone live on the AA network.