RBI Recognises Sahamati as SRO for Account Aggregator Ecosystem: A Major Milestone for India’s Digital Finance Revolution

India’s digital financial infrastructure has emerged as one of the most advanced in the world, powered by innovations such as UPI, Aadhaar, DigiLocker, and the Account Aggregator (AA) framework. In a significant development for the country’s open-finance ecosystem, the Reserve Bank of India (RBI) has officially recognised Sahamati Foundation as the Self-Regulatory Organisation (SRO) for the Account Aggregator ecosystem. The move is expected to strengthen governance, improve coordination among stakeholders, and accelerate the growth of consent-based financial data sharing across the country.

The decision marks an important step in the evolution of India’s digital public infrastructure and demonstrates the regulator’s commitment to creating a secure, transparent, and customer-centric financial ecosystem.

Understanding the Account Aggregator Framework

The Account Aggregator system is one of India’s most innovative financial reforms. It enables individuals and businesses to securely share their financial information with authorised institutions through a consent-driven mechanism.

Traditionally, obtaining financial records for loan applications, insurance products, or investment services involved physical paperwork and lengthy verification procedures. The AA framework digitises this process by allowing users to share financial data electronically after granting explicit consent.

Under this system, customers retain complete control over their information. Financial data is shared only with approved entities and only for the purpose authorised by the customer. The framework ensures privacy, security, and transparency while reducing paperwork and processing delays.

Today, the ecosystem includes banks, insurance companies, mutual funds, pension funds, fintech firms, and various financial service providers working together through a common digital infrastructure.

Who is Sahamati?

Sahamati Foundation is a not-for-profit industry alliance established to promote and strengthen India’s open-finance ecosystem. Since the inception of the Account Aggregator framework, Sahamati has played a critical role in bringing together financial institutions, fintech companies, regulators, and technology providers.

The organisation has focused on creating technical standards, promoting interoperability, resolving industry challenges, and encouraging wider adoption of the AA network.

With RBI’s recognition as the official Self-Regulatory Organisation, Sahamati’s role now becomes even more significant. It will act as the central coordinating body for the ecosystem while ensuring adherence to regulatory principles and industry best practices.

Why RBI Recognised Sahamati as an SRO

As the Account Aggregator ecosystem has expanded rapidly, managing coordination among hundreds of participants has become increasingly complex.

The network now includes organisations regulated by multiple authorities such as RBI, SEBI, IRDAI, PFRDA, and GSTN. With so many stakeholders involved, maintaining consistent standards and resolving operational challenges requires a dedicated institutional mechanism.

By recognising Sahamati as an SRO, RBI aims to:

• Promote uniform industry standards.
• Encourage responsible conduct among participants.
• Improve operational efficiency.
• Strengthen customer protection measures.
• Facilitate dispute resolution.
• Enhance trust in the ecosystem.
• Support innovation without compromising security.

The recognition effectively creates a bridge between regulators and industry participants, enabling smoother implementation of policies and standards.

Responsibilities of Sahamati as an SRO

As the Self-Regulatory Organisation for the AA ecosystem, Sahamati will take on several important responsibilities.

Establishing Governance Standards

One of its primary functions will be developing and maintaining governance frameworks that all participants can follow. These standards will help ensure consistency across the ecosystem.

Promoting Interoperability

For any digital ecosystem to succeed, participants must be able to interact seamlessly. Sahamati will work to ensure smooth interoperability among banks, fintech companies, insurers, and other financial institutions.

Consumer Protection

Trust is essential in financial data sharing. Sahamati will help establish guidelines that protect consumer interests and ensure that data is used only for authorised purposes.

Industry Coordination

The organisation will serve as a platform where various stakeholders can collaborate, discuss challenges, and develop solutions that benefit the entire ecosystem.

Dispute Resolution

As the ecosystem grows, operational disputes and technical challenges may arise. Sahamati will play an important role in facilitating timely resolution and reducing friction among participants.

The Growing Scale of India’s AA Ecosystem

The Account Aggregator network has witnessed remarkable growth since its launch.

According to industry data, the ecosystem now includes more than 1,100 regulated entities connected to the network. Hundreds of millions of financial accounts have already been linked, enabling seamless consent-based data sharing.

The volume of monthly data-sharing transactions has also grown substantially, reflecting increasing adoption across sectors such as:

• Retail lending
• MSME financing
• Insurance
• Wealth management
• Personal finance
• Credit underwriting

This rapid expansion highlights the growing acceptance of digital consent-based financial services among Indian consumers and businesses.

Benefits for Consumers

The recognition of Sahamati as an SRO is expected to deliver significant benefits to customers.

Faster Loan Processing

Consumers can share financial information instantly instead of submitting multiple documents manually. This reduces processing times and improves access to credit.

Greater Data Control

Users remain in complete control of their data and can decide who accesses it, for what purpose, and for how long.

Improved Security

The ecosystem is designed with strong security protocols that minimise risks associated with unauthorised data sharing.

Better Financial Products

Access to verified financial information enables institutions to design more personalised and competitive products for customers.

Enhanced Transparency

Consent-based sharing ensures that users know exactly how their data is being used, creating a transparent financial environment.

Benefits for Financial Institutions

Financial institutions also stand to gain significantly from a stronger AA ecosystem.

Banks and lenders can make faster and more accurate credit decisions. Insurance companies can streamline underwriting processes. Fintech firms can create innovative products based on real-time financial data.

The result is lower operational costs, reduced fraud, improved customer experiences, and increased efficiency across the financial sector.

A Key Pillar of India’s Open Finance Future

The recognition of Sahamati as the Self-Regulatory Organisation represents more than an administrative decision. It reflects the maturity of India’s open-finance ecosystem and the growing importance of data-driven financial services.

Just as UPI transformed digital payments, the Account Aggregator framework has the potential to revolutionise how financial data is shared and utilised. By providing governance, coordination, and industry leadership, Sahamati can help unlock the next phase of innovation in India’s financial sector.

As more institutions join the ecosystem and more consumers embrace consent-based data sharing, the AA framework is likely to become a cornerstone of India’s digital economy.

Conclusion

RBI’s decision to recognise Sahamati as the Self-Regulatory Organisation for the Account Aggregator ecosystem is a landmark development for India’s financial sector. The move strengthens governance, enhances consumer trust, promotes industry-wide collaboration, and supports the sustainable growth of open finance.

With millions of users, hundreds of financial institutions, and rapidly growing transaction volumes, the Account Aggregator framework is poised to reshape financial services in India. Sahamati’s new role as SRO will help ensure that this growth remains secure, transparent, and beneficial for all stakeholders, further cementing India’s position as a global leader in digital financial innovation.