SBI MD Setty says it is a challenge for banks to manage account aggregators – India Times Hindi News

According to RDB Managing Director Srinivasulu Setty, one of the challenges for existing banks on the digital infrastructure front is how they manage or manage the account aggregator ecosystem. state Bank of India.

“For many years, Western countries have been talking about open banking. I think account aggregators are the first step that the banking industry in India is struggling with.

“For big banks, for big existing banks in India, they have to re-invent and create processes and products that enable customers to stay with them. Otherwise, you can connect to any NBFC through an account aggregator. Can connect to other. Can avail services by giving mandate to get their financial information from banks, probably going to be a big development under the digital front,” he said.

The Reserve Bank of India’s account aggregator framework went live earlier this month. Eight major banks – State Bank of India, ICICI Bank, axis Bank, IDFC First Bank, Mahindra Bank Box, HDFC bank, Indus banks are and Federal Bank – joined the Account Aggregator (AA) network, allowing customers to easily access and share their financial data.

ns reserve Bank of IndiaIn 2016, instructions were issued for compliance by every non-banking financial company (NBFC) carrying on the business of account aggregator.

On incorrect pricing driven by liquidity of loans, Setty said banks are generally cautious. “I guess we don’t want to repeat the mistake on the underwriting part. It’s just pricing which, I think, will continue to be an issue for some time. As consumption increases and the investment cycle stretches, some Liquidity will be pumped out and then the pricing will improve,” he said.

He said that RBI ensured that adequate liquidity is available in the market so that the confidence level of all participants in the financial services system is maintained.