Q. With reference to Account Aggregators, consider the statements below:
1. It is a non-banking financial company engaged in the business of providing, under a contract, the service of retrieving or collecting financial information.
2. The licence for AAs is issued by the Finance Ministry.
3. One of the benefits of AAs is that they will help banks reduce transaction costs.Which of the statements given above is/are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:
  • Statement 1 is correct: According to the Reserve Bank of India, an Account Aggregator is a non-banking financial company engaged in the business of providing, under a contract, the service of retrieving or collecting financial information pertaining to its customer. It is also engaged in consolidating, organising and presenting such information to the customer or any other financial information user as may be specified by the bank. 
  • Statement 2 is incorrect: The licence for AAs is issued by the RBI, and the financial sector will have many AAs. 
  • Statement 3 is correct: AAs will allow banks to access consented data flows and verified data. This will help banks reduce transaction costs, which will enable them to offer lower ticket size loans and more tailored products and services to our customers 

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