Pragati - The Sahamati Newsletter April 2024

31 May 2024

Latest events and updates about Account Aggregator ecosystem

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AA Adoption

71.70 million

Consent requests fulfilled 

64.14 million
Accounts linked on AA

568+ FIs

Actively engaged in AA adoption

487 FIs

Live on AA

150 FIPs

Live on AA 

428 FIPs

Live on AA 

87 FIPs

Available on 4 or more AAs 

Common Infrastructure

349 FIs

17 TSPs

Sahamati Certification Framework

180 Signatories
AA Participation Terms

1,477 UAT 

648 Prod

Entries in AA Registry 


Grievances handled


Grievances resolved 


FI Dashboards disseminated

What’s New

The Account Aggregator (AA) ecosystem ushers in a paradigmatic shift in the way individuals and MSMEs access financial services in India. Empowering customers with their “digital capital” requires fostering trust in the ecosystem. Although the ecosystem has fulfilled 70.46 million successful consent-based data-sharing transactions and linked 66.14 million financial accounts to AAs until April 2024, the customers are yet to experience the optimal user experience due to technological, procedural, and business challenges participating entities face in the network.

The ecosystem has come together in participatory governance forums to address challenges such as interoperability, fair use of AA, and economic disincentives. In the past six months, the Fair Use Committee and the PFM & Lending Use Case Councils have deliberated on reasonable data usage parameters for various use cases, such as underwriting, risk monitoring, defaulter collections, and spend analytics. The participatory governance forums have finalized consent templates (CTs) to be implemented as guardrails for consent parameters and data usage. With extensive ecosystem collaboration, the fair use initiatives have finally reached fruition.

In addition to these self-regulatory initiatives, it is time the industry starts harnessing customer education and awareness to nudge users to demand an alleviated customer experience from their data fiduciaries and AAs. Through dedicated campaigns, the ecosystem must create a customer push to strengthen user choice of AA and awareness of reasonable consent parameters.  

A recent customer research exercise on the penetration of AAs in India conducted by CGAP of the World Bank Group revealed intriguing insights. The findings spotlighted the adoption hurdles encountered by nascent ecosystems. The research found that although the concept of AAs is relatively unknown, a significant portion (22%) of the survey respondents were willing to adopt similar frameworks. This presents a prime opportunity for the ecosystem to augment adoption and usage through customer education.

While 44% of respondents suggested discomfort with sharing financial data online, more than 73% of the respondents had expressed their discomfort with the involvement of a third-party application. This insight highlights the need to strengthen communication on the security & safety of the ecosystem and nurture trust. 

The ecosystem must foster customer trust to propel the adoption of the ecosystem forward. We must establish the rationale for orchestrating the data-sharing ecosystem in a federated architecture. Similarly, the ecosystem needs to generate customer awareness of the fiduciary responsibility of consent managers to empower customers with control to avoid unauthorized overuse & misuse. Furthermore, AAs are incentivized to provide the best consent experience to the customer.

As an overarching principle, we believe AA customer communication must be crafted cautiously to avoid overburdening the users. We believe the value propositions customers resonate with across geographies & generations are “convenience without compromising security & privacy” and “granular data-sharing with explicit, informed consent.” Consequently, communicating how AAs enable convenience, control, and consent will bolster financial inclusion and strengthen customer trust in the financial sector.

Technology Update

Governing Council backs the decisions for a dedicated SRO for the Ecosystem

          API Version 2.0.0 Adoption: Extension on the Decommissioning of Previous API Versions

As per the previous ReBIT notification on the ‘Publication of Major API Version 2.0.0,’ the decommissioning date for the AA Ecosystem major API specification versions ‘1.x.x’ (1.1.1, 1.1.2, 1.1.3, & 1.2.0) was set for May 12, 2024. However, after reviewing the adoption status and considering the additional time regulated entities (REs) requested for transitioning to API specification 2.0.0, a one-time extension has been granted, allowing implementation until June 30, 2024. ReBIT expects all entities to complete the adoption process before the extended deadline, including integration testing, going live, and decommissioning previous API Version 1.x.x.


                    Technology Update

Lending through Account Aggregators

Technology Infrastructure Roadmap for the Sahamati AA Network

Currently, critical gaps like poor visibility in the network, complex onboarding & technical overhead for entities managing multiple integrations, lengthy debugging & issue resolution cycles, and complex data collection for regulatory reporting hinder the rollout of the AA ecosystem. Therefore, we aim to build operational capability within the ecosystem through a robust techno-legal infrastructure for Network Observability, Inter-Entity Complaint & Dispute Resolution, Multi-Party Billing, Settlement, & Reconciliation, Network-level Fraud Analysis, and a Support application for the network participants in the Sahamati Network. This tech roadmap lays out the evolution of the current infrastructure to provide for future needs of the ecosystem. To know about the current tech infra available for the ecosystem.

Ecosystem Update

cambrigde open banking finance for regulators programme

Sahamati Contributes to Evolve High-Level Principles for Open Finance

Sahamati recently participated in the Open Finance Roundtable World Bank Spring Meetings 2024. The roundtable aimed to initiate the development of high-level principles for Open Finance, gather feedback from participating authorities on key design elements, and provide regulators and ecosystem stakeholders a platform to share their experience and implementation approach. Sahamati participated in the “Objectives & Participation” session alongside Banco Central do Brasil, the Department of the Treasury, Australia, and the Korea Institute of Finance, South Korea.

                 Advocacy Update

Opportunities for Lending Service Providers (LSPs) in the AA Ecosystem

  Opportunities for Lending Service Providers (LSPs) in the AA Ecosystem

Sahamati hosted a Pragati webinar aimed at laying out the opportunities for Loan Service Providers (LSPs) to leverage the Account Aggregator (AA) ecosystem. The webinar witnessed a keynote address from Hrushikesh Mehta, Senior Vice President of Financial Services at Open Network for Digital Commerce (ONDC). He delved into the impact of AAs to enable a smoother loan application process, with loan sanction in six and a half minutes and just ten minutes for loan disbursement, which benefits end-users, lenders, and LSPs. The webinar also included an explainer session that laid out the process flows for LSPs in the AA ecosystem.

              Advocacy Update


Session on ‘Role of Philanthropy and CSR in Digital Public Infrastructure’

The American Chamber of Commerce in India (AMCHAM India), the apex chamber of U.S. industry in India, recently held its 8th CSR Conference on “Mainstreaming CSR: Intersecting with Business and Climate.” Sahamati participated in a panel discussion on ‘Role of Philanthropy and CSR in Digital Public Infrastructure.’ The session emphasized how private sector resources can drive innovation, sustainability, and resilience within digital ecosystems. The panel delved into philanthropic efforts and corporate social responsibility (CSR) initiatives to advance digital public infrastructure (DPI), and drive pilots & case studies. The panel also discussed potential challenges and proposed actionable strategies.

              Advocacy Update


Digital Public Infrastructure Workshop for the Punjab & Sind Bank (PSB)

Sahamati was invited to the Punjab & Sind Bank (PSB) Business Strategy Meet for a session on the changing landscape in Digital Public Infrastructure (DPI) in India. The session delved into the latest developments in Aadhaar, UPI, Account Aggregator, and Beckn. The session also touched upon the Finternet: The Financial System for the Future– a vision for the global financial system as Nandan Nilekani and Augusto Carstens expressed in their seminal BIS working paper. To know more about the Finternet.

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