Skip to main content

Framework for recognising Self-Regulatory Organisations for the Account Aggregator Ecosystem (SRO-AA)

Reserve Bank of India (RBI) has invited applications for recognition of Self-Regulatory Organisation for the Account Aggregator ecosystem (SRO-AA).

Who are Account Aggregators (AAs)?

Account Aggregators (AAs) undertake the business of account aggregation, i.e., retrieve / collect specified financial information from Financial Information Providers (FIPs) and aggregate, consolidate and present such information to the customers or Financial Information Users (FI-Us).

What is the need of Self-Regulatory Organisations for Account Aggregator ecosystem (SRO-AA)?

The FIPs and FI-Us fall under the purview of different Financial Sector Regulators (FSRs), i.e., Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority of India (PFRDA). Further, Department of Revenue is deemed to be the regulator for Goods and Services Tax Network for the purpose of onboarding the AA ecosystem.

The AA ecosystem is distinct in its complexity, involving exchange of data among a diverse array of Regulated Entities (REs) operating under varied regulatory environments. This complexity necessitates frequent coordination among these REs to address various operational issues such as dispute resolution, standardized agreements, common services, etc. Given its inherent diversity and to support its smoother adoption and stabilisation, it is desirable to have a dedicated Self-Regulatory Organisation for the Account Aggregator ecosystem (SRO-AA).

What shall be the characteristics of SRO-AA?

The SRO-AA is expected to operate under the oversight of RBI and should have the following characteristics –

  • True Representation of the AA ecosystem – The SRO-AA should endeavour to become a true representative of the AA ecosystem, encompassing regulated entities of FSRs acting as NBFC-AAs, FIPs and FI-Us. This representative structure should foster inclusivity and enable the SRO-AA to draw upon the collective expertise and experience of its members, resulting in development of rules that are pragmatic, adaptive and widely accepted within the ecosystem. 
  • Code of Conduct and Oversight – The SRO-AA should set ethical, professional and governance codes, in relation to the participation in the AA ecosystem and monitor the compliance of these codes by the members. It should have strong governance mechanisms, including focus on independent board, transparency and adherence to well-defined processes for overseeing activities of their members.
  • Development-oriented Activity – The SRO-AA should offer support, expert guidance and capacity building initiatives to enable its members to seamlessly adopt and implement the technical requirements of the AA ecosystem. The SRO-AA should educate public about the aspects related to account aggregation, open finance, etc.
  • Independence from Influence – It is expected that the SRO-AA functions above self-interest of any sort and addresses larger concerns of the ecosystem and financial system as a whole. To maintain credibility, the SRO-AA should operate independently, free from the influence of any single member or group of members. While acting as the industry representative, the SRO-AA is expected to ensure equitable and transparent treatment for all its members.
  • Grievance Redressal and Dispute Resolution – The SRO-AA should devise and implement standardised procedures for grievance redressal and handling disputes among members.

What shall be the objectives of SRO-AA?

The SRO-AA is expected to achieve the following objectives –

  • Adopt objective, well-defined and consultative processes to make rules relating to conduct of its members and be able to monitor the compliance of these rules.
  • Promote a culture of compliance of regulatory compliance and public good by the participants of the AA ecosystem.
  • Act as the collective voice of its members in providing suggestions to / engagements with RBI, other FSRs and other stakeholders.
  • Collect and share relevant information with RBI to aid in policymaking.
  • Undertake / encourage a culture of research and development within the AA ecosystem to encourage innovation while ensuring highest standards of compliance and self-governance.

What shall be the eligibility criteria for SRO-AA?

  • The applicant should be set up as a not-for-profit company registered under Section 8 of the Companies Act, 2013.
  • The applicant should have / demonstrate to achieve a minimum net worth of ₹2 crore within one year after recognition as an SRO-AA by RBI, or before commencement of operations as an SRO-AA, whichever is earlier. Thereafter, the SRO-AA shall maintain the minimum required net worth on an ongoing basis.
  • The shareholding of the SRO-AA should be sufficiently diversified and no entity shall hold 10% or more of its paid-up share capital, either singly or acting in concert.
  • The applicant must possess / demonstrate the ability to create necessary infrastructure to enable it to discharge responsibilities of the SRO-AA effectively and consistently. 
  • The applicant and key executives must have professional competence and have general reputation of fairness and integrity to the satisfaction of RBI. 

What shall be the criteria for membership of SRO-AA?

  • The participants of the AA ecosystem, viz., NBFC-AAs, FIPs and FI-Us, are eligible to become members of the SRO-AA. 
  • The membership for SRO-AA is voluntary. SRO-AA should ensure that its members should evenly include all the types / classes of FIPs and FI-Us. To ensure balanced representation, the SRO-AA shall have at least 25 unique entities each from FIPs and FI-Us as its members at all times, subject to review. Failure to maintain the same, would render the SRO-AA liable for revocation of the recognition granted.
  • The membership fee structure developed by the SRO-AA should be reasonable and non-discriminatory. While membership fees may vary or be differentiated, based on size, intent, capability, etc., it should be ensured that the membership character remains non-discriminatory.
  • The SRO-AA should derive necessary powers through the membership agreements to set rules, codes of conduct, etc. for its members and monitor compliance thereto.

What shall be the criteria for the Board of SRO-AA?

  • At least 1/3rd of members in the Board, including the Chairperson, should be independent and without any active association with the participants of the AA ecosystem.
  • Not more than 1/4th of the members in the Board shall be nominated by NBFC-AAs.
  • To ensure that all sectors / types of participants of the AA ecosystem are duly represented, the Board should have a good mix of Directors with varied expertise and experience from FIPs and FI-Us. At least one director should possess expertise in regulations of banks and financial services. 

What shall be the responsibilities of SRO-AA towards FSRs?

The SRO-AA shall discharge the following responsibilities towards the FSRs –

  • The SRO-AA should keep RBI regularly informed of the developments / trends / concerns in the ecosystem to complement the oversight. It shall also promptly inform RBI and other FSRs about any violation by its member of the provision of the Acts or the rules / guidelines / regulations / directions issued by RBI / other FSRs, that comes to its notice.
  • The SRO-AA should carry out any work assigned to it by RBI and examine the proposals or suggestions referred to it.
  • The SRO-AA shall provide data / information, sought by RBI / other FSRs periodically or as advised.
  • The SRO-AA should submit an Annual Report to RBI and other FSRs, within 3 months of completion of the accounting year. The SRO-AA shall submit the periodic / adhoc returns as may be sought by RBI / other FSRs.
  • The SRO-AA should engage in periodic interactions with RBI. It is expected that SRO-AA would look at the larger picture of the ecosystem in offering its views / inputs / suggestions.
  • The SRO-AA should discharge such other functions and also abide by such other directions as specified by RBI from time to time.
  • RBI may, if it deems necessary, inspect the books of the SRO-AA or arrange to have the books inspected by an audit firm. The expenses of such inspection shall be borne by the SRO-AA.

How shall the application of SRO-AA be processed?

  • An entity aspiring to function as an SRO shall make an application to RBI for recognition.
  • Where the applicant is deemed suitable, RBI would issue a “Letter of Recognition” as the SRO-AA.


References

Reserve Bank of India. (2025, March 12). 'Framework for recognising Self-Regulatory Organisations (SROs) for the Account Aggregator Ecosystem'. Retrieved from https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1291

Reserve Bank of India. (2025, March 12). 'Invitation of applications for recognition of Self-Regulatory Organisation(s) for the Account Aggregator Ecosystem'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=59956


Follow at - Telegram   Instagram   LinkedIn   X   Facebook

Labels:

Comments

Post a Comment

Popular Posts

Reserve Bank - Integrated Ombudsman Scheme, 2026 (RB-IOS, 2026)

Reserve Bank of India (RBI) has issued Reserve Bank - Integrated Ombudsman Scheme, 2026. Who is RBI Ombudsman and RBI Deputy Ombudsman? RBI may appoint one or more of its officers as RBI Ombudsman and RBI Deputy Ombudsman, to carry out the functions entrusted to them under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS).  The appointment of RBI Ombudsman or RBI Deputy Ombudsman shall be for up to 3 years at a time. RBI Ombudsman shall have the power to examine and close all complaints.   RBI Deputy Ombudsman shall have the power to close those complaints falling under clause 10 of the RB-IOS (i.e. non-maintainable complaints) and complaints resolved as per the provisions of the clause 14(8)(a) to 14(8)(c) of the RB-IOS (i.e. complaint resolved / withdrawn). Which entities are covered under the RB-IOS? RB-IOS shall be applicable to the following Regulated Entities (REs) – Commercial Banks Regional Rural Banks  State Co-operative Banks Central Co-operative Bank...
Post a Comment
Read more

Modified Interest Subvention Scheme for Agricultural Loans

Reserve Bank of India (RBI) has published the modified interest subvention scheme (MISS) for short term loans for agriculture and allied activities availed through Kisan Credit Card (KCC) during the financial year 2025-26. Which loans are covered under modified interest subvention scheme (MISS)? The short-term crop loans and short-term loans for allied activities including animal husbandry, dairy, fisheries, bee keeping etc. up to an overall limit of ₹3 lakh to farmers through KCC during the year 2025-26 will be covered for interest subvention. Which lending institutions are covered under MISS? The MISS is applicable to the lending institutions viz. Public Sector Banks (PSBs) and Private Sector Banks (in respect of loans given by their rural and semi-urban branches only), Small Finance Banks (SFBs) and computerized Primary Agriculture Cooperative Societies (PACS) ceded with Scheduled Commercial Banks (SCBs), on use of their own resources.  How much is the interest subvention? The a...
Post a Comment
Read more

Financial Literacy Week (FLW) 2026

Reserve Bank of India (RBI) has observed financial literacy week from February 09 to 13, 2026. Financial Literacy and Financial Education Organization for Economic Co-operation & Development (OECD) defines ‘financial literacy’ as a combination of financial awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being.  OECD defines ‘financial education’ as the process by which financial consumers / investors improve their understanding of financial products, concepts and risks and through information, instruction and / or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help and to take other effective actions to improve their financial well-being. Financial Literacy Week (FLW) Reserve Bank of India (RBI) has been observing Financial Literacy Week (FLW) every year since 2016 to p...
Post a Comment
Read more

Internal Ombudsman for Regulated Entities (Banks, NBFCs, PPI Issuers and CICs)

Reserve Bank of India (RBI) has issued directions on Internal Ombudsman for regulated entities. To whom shall the directions on Internal Ombudsman (IO) be applicable? The directions on IO shall be applicable to the following Regulated Entities (REs) – Commercial Banks (other than Small Finance Banks, Payment Banks, and Local Area Banks) having 10 or more banking outlets in India as on March 31, 2025, whether such bank is incorporated in / outside India Small Finance Banks having 10 or more banking outlets in India as on March 31, 2025 Payments Banks having 10 or more banking outlets in India as on March 31, 2025 Non-Banking Financial Companies (NBFCs) fulfilling the following criteria as on March 31, 2025 – Deposit-taking NBFCs (NBFCs-D) with 10 or more branches Non-Deposit taking NBFCs (NBFCs-ND) with asset size of ₹5,000 crore and above and having public customer interface Non-Bank Prepaid Payment Instruments Issuers having more than 1 crore Prepaid Payment Instruments (PPIs) outstan...
Post a Comment
Read more

What is Reserve Bank of India – Digital Payments Index (RBI-DPI)? (Updated on February 12, 2026)

There have been continuous efforts by various stakeholders for digitization of payments in the country. But how to we measure the impact of these efforts?  What is Reserve Bank of India – Digital Payments Index (RBI-DPI)? Reserve Bank of India (RBI) has constructed a composite Digital Payments Index (DPI) to capture the extent of digitization of payments across the country. What are the parameters of RBI-DPI? The RBI-DPI comprises of five broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods. These parameters along with their weights in the RBI-DPI are as follows –  Payment Enablers (25%) Payment Infrastructure – Demand-side factors (10%) Payment Infrastructure – Supply-side factors (15%) Payment Performance (45%) Consumer Centricity (5%).  Each of these parameters have sub-parameters which, in turn, consist of various measurable indicators.  What is the base year for RBI-DPI? The RBI-DPI ...
Post a Comment
Read more