The Reserve Bank of India (RBI) has officially recognised Sahamati Foundation as the self-regulatory organisation (SRO) for the account aggregator ecosystem. This development comes after the central bank had invited applications for the recognition of SROs for the account aggregator framework in March of this year.
Background of the Recognition
In March, the RBI sought applications from entities interested in becoming the self-regulatory organisation for the account aggregator ecosystem. The Sahamati Foundation submitted its application, which was thoroughly examined against the prescribed requirements under the regulatory framework. After a detailed evaluation, the RBI decided to grant recognition to Sahamati Foundation as the SRO for the account aggregator ecosystem.
Role of the SRO
The self-regulatory organisation will play a crucial role in overseeing and regulating the account aggregator ecosystem. It will be responsible for ensuring compliance with the guidelines set by the RBI, promoting best practices, and fostering the growth of the account aggregator framework. The SRO will also address any issues or grievances within the ecosystem, thereby enhancing transparency and trust among stakeholders.
The recognition of Sahamati Foundation marks a significant step towards the formal regulation of the account aggregator ecosystem. It is expected to bring more clarity and structure to the operations of account aggregators, which are pivotal in enabling financial data sharing with user consent. This move aligns with the RBI's broader objective of promoting innovation while ensuring data security and privacy.
In conclusion, the RBI's decision to recognise Sahamati Foundation as the self-regulatory organisation for the account aggregator ecosystem underscores the importance of robust governance mechanisms in the financial technology space. This recognition is anticipated to facilitate the seamless functioning of account aggregators, ultimately benefiting consumers and financial institutions alike.
