India's RBI Advances Account Aggregator API Framework for Financial Data Sharing

The Reserve Bank of India advanced its Account Aggregator (AA) regulatory framework in early 2019, granting in-principle approvals for entities that would facilitate API-based, consent-driven sharing of financial data across banks and financial institutions. The framework was expected to become operational during 2019-20, creating a regulated open banking infrastructure for India's financial ecosystem. Account Aggregators serve as intermediaries that allow consumers and businesses to share their financial data securely with third-party service providers, enabling embedded finance use cases such as streamlined lending, wealth management, and personal finance management.

The initiative was discussed in the context of broader fintech regulatory developments in India, as referenced in a BIS review publication. The AA framework represents a significant regulatory building block for BaaS and embedded finance in one of the world's largest financial markets. By standardizing data sharing through APIs, the RBI aimed to foster competition, improve credit access, and reduce friction in financial services delivery.

The framework positions India alongside the UK and EU in advancing open banking regulation.