IndusInd Bank / FIP: Private sector lender IndusInd Bank has become the bank to go live as ‘Financial Information Provider’ (FIP). IndusInd Bank is the first bank in the country to do so under the new ‘Account Aggregator Framework’ of the Reserve Bank of India (RBI). With this, customers of the bank can now avail a credit card ranging from track statement, plan investment (shares, mutual funds, insurance, EPF, PPF) to get a statement of their bank account on a single window. This will facilitate the customers to make decisions related to their finance.
This initiative has been taken by the Reserve Bank of India, which will benefit the services of an individual or small and medium-sized businesses and at the same time will be able to meet their financial needs in an easy manner.
Customers’ consent will be necessary
As a FIP, IndusInd Bank will be able to securely and seamlessly share its financial information with Financial Information Users (FIUs) with its account aggregator ecosystem. However, it will be with the special consent of the customers. Once financial institutions go live on the AA framework, there is no need to collect or submit physical documents to take loans, access other financial products and services.
Customers can choose favorite product
Saumitra Sen, Head of IndusInd Bank Consumer Banking says that at IndusInd Bank we have always focused on new technology in technology for customer empowerment. The Account Aggregator Framework is an important step in the direction that will empower the customer to choose their favorite product or services. He said that we are happy to collaborate with DigiSahamati Foundation in this journey.
What kind of facilities
This system will eliminate the current process of submitting physical documents, which will save time.
Individual and SME customers will be able to digitally share their financial information to regulated financial institutions such as banks and NBFCs within a secure framework.
There is a provision for clear consent of customers before sharing information.