Explained: What is Account Aggregator framework, and how does it work?

The Account Aggregator ecosystem is set to adopt a standardised pricing model for the first time, according to a report by Business Standard. From November 1, 2026, financial institutions that access customer data through the AA network will pay a standard fee. The move aims to make the network more financially sustainable and replace the separate commercial arrangements that institutions have followed so far.

But what is the Account Aggregator framework, and how does it function?

What is the Account Aggregator framework?

Introduced by the Reserve Bank of India (RBI) in 2016, the Account Aggregator framework is a consent-based digital system that allows individuals to share their financial information between regulated financial institutions. It aims to make financial data more accessible to customers and easier to use when applying for loans or accessing other financial services.

For instance, someone applying for a personal loan may need to submit bank statements to demonstrate their income and repayment capacity. Traditionally, applicants would upload PDF statements or share information through other processes that could be cumbersome and, in some cases, expose sensitive credentials. The Account Aggregator framework allows customers to authorise the digital transfer of the required financial information directly from the institution holding it to the institution requesting it.

According to the Department of Financial Services, Account Aggregators are non-banking financial companies (NBFCs) engaged in retrieving or collecting financial information relating to customers. An Account Aggregator transfers data from one financial institution to another based on an individual’s instructions and consent. Registration with an Account Aggregator is voluntary for consumers. The RBI has so far granted Certificates of Registration to 17 companies to operate as Account Aggregators.

How does the Account Aggregator framework work?

The framework connects four key participants: the customer, the Financial Information Provider (FIP), the Financial Information User (FIU) and the Account Aggregator.

Customer: The individual who owns the financial information and decides whether to share it

FIP: The institution holding the information, such as a bank or another eligible financial institution

FIU: The regulated entity requesting the information, such as a lender assessing a loan application

Account Aggregator: An RBI-licensed NBFC that acts as a secure digital bridge, facilitating the transfer of encrypted data

Consider a customer applying for a loan. The lender requests the customer’s bank statement through the AA network, and the customer receives a consent request specifying the information sought, the purpose of sharing it and the intended recipient.

Once the customer approves the request, the bank sends the relevant information digitally through the network to the lender. The lender can then use the data for the stated purpose, subject to the applicable consent terms and regulatory requirements. The framework can also facilitate the sharing of other eligible financial information, depending on the institutions participating in the network and the information covered by the applicable rules.

The key benefits of the framework thus include greater customer control over financial information, reduced paperwork, no direct cost to users for sharing data through the framework and end-to-end encryption.

How did the Account Aggregator fee system work earlier?

While customers can share their financial information through the Account Aggregator network at no direct cost, the institutions operating the network need to fund the technology and services required to facilitate these transactions.

Until now, financial institutions have relied on separate commercial agreements to connect to the network. These arrangements involved Account Aggregators, banks, lenders and technology service providers (TSPs) that helped institutions integrate their systems. The terms of these agreements, including payments and revenue distribution, varied across participants.

TSPs charged for their integration services, and depending on the arrangement, payments could be routed through these intermediaries. Banks also had to invest in and maintain systems to share customer data, but they did not receive a share of the transaction fee.

What is the new Account Aggregator fee structure?

To bring greater uniformity to these arrangements and support the network’s financial sustainability, the Account Aggregator ecosystem is set to introduce a standardised pricing model from November 1, 2026.

Under the new model, financial institutions requesting data through the network will pay a common fee under a standard contract, replacing the separate commercial arrangements followed earlier.

The fee will be shared among three participants: the FIP, which supplies the data; the Account Aggregator, which facilitates its transfer; and Sahamati, the RBI-recognised self-regulatory organisation that oversees the ecosystem. The fee will be paid through a single bill, with the Account Aggregator distributing the respective shares.

The new model is intended to help fund the infrastructure needed to operate the network, including technology upgrades, regulatory compliance, two-factor authentication, consent dashboards and cybersecurity. It will also allow banks and other data providers to earn a share for supplying information, provided they meet the prescribed data-delivery performance requirements.

The standardised fee will not cover every service offered by Account Aggregators. They can continue to charge lenders separately for additional value-added services, such as customised software tools.

What does the new pricing model mean for customers?

The new pricing model primarily changes the commercial arrangements between institutions participating in the AA network. Customers will continue to share their financial information voluntarily and only with their explicit consent. Under Sahamati’s circular, participating entities cannot directly charge customers for sharing financial data through the framework.

RBI allows interoperability among NBFC Account Aggregators

Separately, the RBI has allowed interoperability among NBFC Account Aggregators. RBI Governor Sanjay Malhotra announced the measure during the October 7 monetary policy committee announcement. He said interoperability would allow customers to aggregate their financial information through different Account Aggregators without having to separately onboard with multiple platforms. The move is expected to address one of the key challenges in the existing Account Aggregator ecosystem: the need for financial institutions and users to integrate with multiple Account Aggregators separately.