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Guide to NBFC Account Aggregator License


Last Updated on February 9, 2024 by Kanakkupillai

The NBFC Account Aggregator License permits financial institutions to digitally share data about their clients. Companies applying for this license must register under the Companies Act 2013 and possess essential capital structure, while the general character of administration should not harm the public interest.

NBFC compliance must establish and implement a board-approved policy for responding to and resolving customer grievances within one month and deploy excess investments in non-tradable instruments.

Regulatory Requirements

  1. An NBFC Account Aggregator License is an essential regulatory requirement that helps safeguard customer data and deliver better financial services to their customers. These companies are accountable for gathering all the financial information from customers and aggregating it for storage safely – adhering to RBI guidelines while keeping internal systems up-to-date.
  2. For an NBFC Account Aggregator license to be awarded, a company must register under the 2013 Corporate Act and fulfil all other requirements. A net-owned fund of Rs 2 crores must exist prior to being eligible to apply for this license; furthermore, an IT framework that adheres to RBI guidelines must also be developed to secure customer data.
  3. An aggregator must have a board-approved policy for handling and disposing of customer grievances, along with providing the name and contact details of its Grievance Redressal Officer on its website and at their place of business. Furthermore, an internal mechanism for monitoring and evaluating processes, systems, procedures, controls, and strong authentication measures to secure customer data must also exist within an aggregator’s organization.
  4. Additionally, an aggregator must not disclose their customers’ financial information to any third party and must avoid engaging in activities deemed harmful to the public interest. Furthermore, they must adopt a Citizen’s Charter which ensures customer rights are upheld – cutting off financial information of customers before their consent has been obtained is also prohibited – furthermore, they should use their resources exclusively for this activity and employ an IT infrastructure capable of handling the large volume of data they will be required to store and transfer along with having a solid business plan and financial foundation in place – otherwise they risk becoming insolvent and going bankrupt.


To qualify as an NBFC-AA, one must meet specific eligibility requirements. These include having adequate resources and financial wherewithal; adequate capital structure; appropriate promoters; a leverage ratio not exceeding 7; having an appropriate IT infrastructure that protects customer financial data securely and does not share it without prior customer permission; being capable of offering an array of services – credit, wealth management advice, investment offers; as well as future services powered by artificial intelligence like robo banking (robo banking).

NBFC account aggregators are non-banking financial companies that aggregate information from various sources into one central view of customer finances. This innovation empowers consumers and makes the overall economic landscape more transparent and efficient. Yet, it must abide by strict regulatory guidelines while offering top security protection standards to safeguard customer data.

To be eligible to become an NBFC-AA license holder, one must meet specific criteria:

  • An NBFC-AA’s primary function is to organize client account information in an easy and consolidated way and store it so it can be quickly retrieved when desired. Consumers have complete discretion in whether or not to utilize this service, though some NBFC-AAs also perform IT-related activities that provide them with advanced knowledge.
  • An outstanding IT infrastructure is vital to the success of an NBFC-AA as this will facilitate the storage and transfer of financial data between FIPs. Furthermore, this must protect from unauthorized access while protecting customer credentials from theft. NBFC-AAs must possess sufficient financial resources to meet their operating expenses and liabilities.
  • In September 2016, the Reserve Bank of India issued master directions for an entirely new class of non-bank financial companies: account aggregators. These entities act as consent brokers and facilitate the consolidation of accounts across financial sector organizations while only sharing data with consent from customers, making them highly secure entities.

Application Process

  1. A National Bank Finance Company Account Aggregator License provides individuals with easy access to all their account information in one central place, saving time and effort, providing a holistic overview of their financial assets, helping them make better decisions, and increasing overall well-being. Aggregators provide services like personal financial management platforms, wealth advisory, investment offers and security measures designed to protect users’ financial data – but before applying for this license, they must understand compliance requirements and regulatory framework.
  2. An entity wishing to conduct aggregator activities must register as a non-banking finance corporation under the Companies Act 2013. Furthermore, they must possess sufficient resources and fit and proper promoters; moreover, they must adhere to RBI master directions regarding CoRs for CoR certification purposes.
  3. After receiving in-principle approval from their bank, applicants must create a technology platform and draft all legal documentation for starting their business. This process could take up to 12 months when they must obtain an NBFC-AA license from RBI.
  4. An aggregator’s primary role is to gather data from various accounts in FIP and combine and sort them on one platform for storage and disclosure to users according to RBI-DNBR instructions. Aggregators may share user financial information with other financial services providers after receiving consent from each user.
  5. An aggregator must implement a board-approved policy governing its handling and disposition of customer grievances in a transparent and accessible way for public use. Furthermore, they must implement an auditing system to confirm the information provided by its clients is correct.
  6. The RBI requires that an aggregator comply with its statutory regulations, ensuring not to misuse customer information or expose them to risk. They should respond quickly when customers contact them with queries, notify regulators when altering policies or procedures and submit regular reports regarding accounts to regulatory bodies.


  1. Compliances of NBFC Account Aggregators are crucial to safeguard customer data and privacy, such as protecting sensitive information securely, complying with regulatory guidelines, and reporting to regulators regularly. This helps companies build their reputation while upholding service integrity, avoiding fines or penalties, and better protecting themselves from data breaches and cyber-attacks.
  2. A data aggregator should only collect information from financial entities regulated by RBI, SEBI, EPFO and other government agencies. Furthermore, they must only use this data for providing services to clients; any misuse would violate RBI regulations regarding storage and transmission.
  3. Aside from fulfilling its legal requirements and meeting specific operational efficiency benchmarks, an NBFC-AA must comply with certain compliances to ensure its operational effectiveness and legality. For instance, it must meet minimum net worth requirements, adhere to data protection and privacy guidelines and establish a robust technology infrastructure – in addition to reporting its compliance position to RBI continuously.

Benefits of NBFC Account Aggregator License

  1. Finding financial products like credit cards or loans can be difficult and time-consuming for some individuals due to the many documents and financial data required. But now there’s the Account Aggregator Framework, which the government has introduced as a solution. Individuals can share their financial data more efficiently with various financial institutions for approval faster and reduce delays when applying. It’s a fantastic initiative by them that should save time and effort when using financial products like loans or credit cards.
  2. In 2016, the Reserve Bank of India (RBI) implemented the NBFC Account Aggregator (AA) framework, enabling individuals to consolidate their assets across multiple financial institutions securely and securely. Data shared is subject to stringent security standards implemented by these companies that RBI regulates; additionally, consumers have complete control over what data is shared – no reselling of data allowed, and they must seek consent before sharing any personal data – Plus, consumers are free to withdraw this consent anytime!
  3. The newly implemented NBFC AA framework by the government will bring numerous benefits. One key advantage is enabling financial institutions to assess creditworthiness more quickly and efficiently and identify bad loans/NPLs more readily; all this will increase formal lending in the economy and spur overall economic development.
  4. Additionally, aggregators can offer other financial services to their customers, such as wealth management advice and investment offers. Furthermore, they can use data collected to develop future services like robo-banking using artificial intelligence – making the aggregators even more competitive in the market and giving their customers more options when selecting financial products.
  5. One key advantage of the NBFC-AA framework is facilitating easier credit access for individuals. In the past, when applying for loans or credit cards from NBFC-AA institutions, they would require applicants to submit numerous documents so the institution could assess their creditworthiness – this could often take several days before being approved – With its aggregator framework, this process has been drastically simplified and saves both parties both time.
  6. Another advantage of an aggregator is that it can assist other NBFCs in lowering their non-performing assets (NPAs) by helping identify loan applicants, thus decreasing NPAs and the cost of capital for them, thus making them more profitable in the long run.


While NBFC-AAs offer many advantages, they also come with their risks. These may include difficulties securing adequate funding to operate as an aggregator and not all consumers appreciating its services. Aspiring NBFC-AAs must recognize these potential threats and take steps to address them accordingly.

To be successful in such an aggressive market, NBFC-AAs must understand their industry’s needs and craft a business plan to address those opportunities. By consolidating financial data and offering value-added services, NBFC-AAs can draw new customers while expanding their business. Furthermore, taking the time to understand the regulatory framework and comply with data privacy and security measures will allow NBFC-AAs to maximize their potential within financial services.

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