What is Account Aggregation? Meaning, Benefits & RBI Guidelines

Account Aggregation (AA) is a digital system that allows individuals and businesses to view and share their financial information from multiple accounts in one place, securely and with their consent. 

It is regulated by the Reserve Bank of India (RBI) to ensure privacy and transparency. Let’s understand from Rohit’s example.

How Rohit Discovered Account Aggregation?

Rohit runs a small furniture manufacturing business in Delhi. Over the years, his firm opened accounts in three banks: one current account, one savings account, and one loan account. His total deposits stood at ₹2,500,000, while his business loan was around ₹1,200,000.

Whenever he needed a loan top-up or had to share his financial details with investors, the process was painful; he had to download statements from all three banks, merge them manually, and send scanned PDFs.

One day, his banker said, “Sir, why don’t you register with an Account Aggregator? It’ll save you time and show all your accounts in one place.” Rohit signed up, and to his surprise, he could now view and share his complete financial picture with just a few taps,  securely and instantly.

This blog explains what Account Aggregation is, how it works, its benefits, RBI rules, and examples,  so you can save time and take control of your finances like Rohit did.

What is Account Aggregation?

Account Aggregation is a digital framework introduced by the RBI that allows customers to share their financial data from multiple accounts with a financial service provider in a secure, consent-based way.

It’s made possible by entities licensed by the RBI called Account Aggregators. They don’t store your money; they just help you access and share your data.

Formula-like explanation:

Total financial view = Current Accounts + Savings + Loans + Mutual Funds + Insurance

Example:

If Rohit has the following:
 

Through an Account Aggregation app, he can view: ₹8.00,000 net balance at a glance.

Benefits of Account Aggregation

Account Aggregation has several advantages for customers, banks, and financial service providers.

For Customers:
 

1. One view of all accounts
    
2. No paperwork for loans or investments
    
3. Better financial planning
    
4. Privacy and control over who sees your data

Example: Rohit applied for a business loan of 5,00,000. Instead of uploading 3 separate account statements, he used his Account Aggregation app to share his financial data in 2 minutes, getting his loan approved faster.

RBI Guidelines for Account Aggregators

The RBI has set clear guidelines to ensure that Account Aggregation is safe and customer-centric. Firstly, only licensed NBFCs can operate as AAs.

Secondly, customer consent is mandatory for data sharing, and it can be revoked at any time. Importantly, AAs are not allowed to store any customer data permanently; they just facilitate access. 

Data is fully encrypted and shared only for the period consented to. For example, Rohit consented to share his ₹25,00,000 deposits and ₹12,00,000 loan data with a lender for 30 days. After 30 days, the lender could no longer access his details unless he renewed his consent.

RBI Rules for AAs
 

How Account Aggregation Helps Businesses?

For business owners like Rohit, Account Aggregation has been a big help. Businesses often have accounts in multiple banks, and reconciling them takes time. 

With AA, you can track all balances, payables, and loans on one dashboard. When applying for credit or pitching to investors, you can instantly share accurate financial details. 

Rohit needed to show a monthly revenue of ₹400,000 and a loan balance of ₹10,00,000 to an investor. Earlier, this took hours to compile, but now, his AA app does it in minutes. For GST filing and cash flow monitoring, too, AA proves invaluable.

Business Benefits of AA

For businesses, managing finances often means juggling multiple bank accounts, loans, credit lines, and even investment accounts. This fragmentation can lead to inefficiency, delays, and errors, especially when timely financial data is crucial for decisions. 

Account Aggregation (AA) solves this problem by offering a single, secure, real-time view of all financial accounts, which is especially valuable for business owners and finance managers.

Businesses can use AA not just to monitor their cash flow, but also to share their verified financial data quickly and securely with lenders, investors, or auditors. This increases transparency and builds trust with stakeholders.

For example, a small manufacturer applying for a loan of ₹10,00,000 can instantly share all account details and repayment history with the lender through an AA app, reducing loan processing time from days to hours. 

Similarly, a startup pitching to investors can demonstrate its financial health more effectively using consolidated AA reports.

How to Register for Account Aggregation?

Registering for Account Aggregation is simple and free for individuals. First, choose a licensed AA like CAMS Finserv, Onemoney, or Finvu. Then, register using your mobile number and verify it via OTP. Once inside the app, link all your financial accounts by providing consent. 

After that, you can view all your balances in real-time and share data securely when needed. Rohit linked his current account (₹1,200,000), savings account (₹800,000), and loan account (-₹1,200,000), and within minutes, his net position of ₹800,000 was visible. 

This transparency has made financial planning much easier for him.

Conclusion

Rohit’s experience shows how Account Aggregation can save time, improve transparency, and make financial planning smarter. Earlier, he struggled with scattered statements and endless paperwork; now, everything is just a click away. 

For individuals tracking their savings or businesses managing loans and investors, AA is a game-changer. 

Being financially organised gives you an edge. So, like Rohit, take charge of your finances, simplify your life, and explore the world of Account Aggregation,  because managing your money should always be on your terms.

FAQs on Account Aggregation

Q1: What is an Account Aggregator?

An Account Aggregator (AA) is a licensed entity that allows customers to view and share their financial information from multiple accounts in a secure, consent-based way.

Q2: Is Account Aggregation safe?

Yes. Data is encrypted, and you control who sees your information and for how long.

Q3: How is it different from internet banking?

Internet banking only shows one bank’s account. AA consolidates all accounts,  even across banks and NBFCs.

Q4: Do I have to pay for AA?

No. For individuals, it is free. Businesses may be charged for premium features.

Q5: Can I revoke consent after sharing?

Yes. You can stop data sharing anytime through the AA app.

Q6: Who regulates AAs?

The Reserve Bank of India (RBI) regulates and licenses AAs under its NBFC-AA framework.

Q7: Which institutions support AA?

Most major banks (like SBI, HDFC, ICICI) and financial entities are already live on the AA framework.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?