RBI’s Account Aggregator interoperability reform: How it could ease digital lending, improve data sharing
The RBI's recent measure is expected to address fragmentation in India’s Account Aggregator ecosystem, where customers have often had to register with multiple platforms to share financial information held across institutions.
- Oct 15, 2026,
- Updated Oct 15, 2026 6:15 PM IST
The Reserve Bank of India’s (RBI) decision to allow interoperability among Account Aggregators (AAs) could simplify financial data sharing, reduce friction in digital lending and give customers greater flexibility in choosing how their financial information is accessed.
The measure is expected to address fragmentation in India’s Account Aggregator ecosystem, where customers have often had to register with multiple platforms to share financial information held across institutions.
Venkatesh Krishnamoorti, founder of SAAFE Account Aggregator, said the absence of interoperability had constrained the ecosystem’s potential by forcing customers to maintain multiple accounts.
“The major obstacle to AA’s potential growth was the lack of interoperability, which forced customers to create multiple accounts with different AAs to access and share their financial data,” he said.
According to Krishnamoorti, the arrangement also complicated consent management and prevented customers from using their preferred Account Aggregator for all their financial information-sharing needs.
How interoperability could improve digital lending
Account Aggregators facilitate the consent-based sharing of financial information between institutions and authorised users. Lenders can use this information to assess borrowers’ financial positions and cash flows, helping streamline credit underwriting.
However, fragmented access to financial information can interrupt the lending process when customers are unable to link all their bank accounts through their chosen AA.
Interoperability could help reduce these interruptions by enabling customers to access the ecosystem more seamlessly, potentially improving the completion of loan applications.
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Varoon Naidu, co-founder of Capital Stack, said the reform could strengthen India’s digital credit infrastructure by reducing the friction involved in collecting, verifying and standardising financial information across lenders.
“A more interoperable AA ecosystem can materially reduce this friction by enabling consent-based access to verified financial data and making the underwriting process faster and more efficient,” he said.
MSMEs could benefit from better credit assessment
The reform could be particularly significant for micro, small and medium enterprises (MSMEs), which may face difficulties securing credit because lenders lack comprehensive information about their financial performance.
Access to verified banking data could help lenders assess actual cash flows and financial behaviour rather than relying predominantly on traditional credit bureau scores, collateral or information submitted by borrowers.
Naidu said the change could improve credit availability and quality, reduce turnaround times and potentially enable lenders to price risk more accurately.
However, he cautioned that the outcome would depend on how seamlessly interoperability is implemented across Account Aggregators, lenders and Financial Information Providers.
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Greater customer choice and simpler consent management
For customers, interoperability could mean choosing one preferred Account Aggregator to manage permissions for sharing financial information across participating institutions.
Krishnamoorti said the reform would also benefit financial information providers by reducing the technological integration burden associated with connecting to different aggregators. For Account Aggregators, it could create more equitable access to financial information providers.
He added that improving the customer experience around consent management would remain important, particularly with the Digital Personal Data Protection framework expected to be implemented in 2027.
The reform’s ultimate impact will depend on adoption across the ecosystem. If implemented smoothly, interoperability could make financial data sharing more convenient for consumers while helping lenders make faster, better-informed credit decisions.
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The Reserve Bank of India’s (RBI) decision to allow interoperability among Account Aggregators (AAs) could simplify financial data sharing, reduce friction in digital lending and give customers greater flexibility in choosing how their financial information is accessed.
The measure is expected to address fragmentation in India’s Account Aggregator ecosystem, where customers have often had to register with multiple platforms to share financial information held across institutions.
Venkatesh Krishnamoorti, founder of SAAFE Account Aggregator, said the absence of interoperability had constrained the ecosystem’s potential by forcing customers to maintain multiple accounts.
“The major obstacle to AA’s potential growth was the lack of interoperability, which forced customers to create multiple accounts with different AAs to access and share their financial data,” he said.
According to Krishnamoorti, the arrangement also complicated consent management and prevented customers from using their preferred Account Aggregator for all their financial information-sharing needs.
How interoperability could improve digital lending
Account Aggregators facilitate the consent-based sharing of financial information between institutions and authorised users. Lenders can use this information to assess borrowers’ financial positions and cash flows, helping streamline credit underwriting.
However, fragmented access to financial information can interrupt the lending process when customers are unable to link all their bank accounts through their chosen AA.
Interoperability could help reduce these interruptions by enabling customers to access the ecosystem more seamlessly, potentially improving the completion of loan applications.
MUST READ: BT Explainer: Strong GDP, weak rupee: Why India cannot stop its currency from falling
Varoon Naidu, co-founder of Capital Stack, said the reform could strengthen India’s digital credit infrastructure by reducing the friction involved in collecting, verifying and standardising financial information across lenders.
“A more interoperable AA ecosystem can materially reduce this friction by enabling consent-based access to verified financial data and making the underwriting process faster and more efficient,” he said.
MSMEs could benefit from better credit assessment
The reform could be particularly significant for micro, small and medium enterprises (MSMEs), which may face difficulties securing credit because lenders lack comprehensive information about their financial performance.
Access to verified banking data could help lenders assess actual cash flows and financial behaviour rather than relying predominantly on traditional credit bureau scores, collateral or information submitted by borrowers.
Naidu said the change could improve credit availability and quality, reduce turnaround times and potentially enable lenders to price risk more accurately.
However, he cautioned that the outcome would depend on how seamlessly interoperability is implemented across Account Aggregators, lenders and Financial Information Providers.
ALSO READ: Crude oil may hit $110, India's import basket could touch $130 in 10 days: SBI Research
Greater customer choice and simpler consent management
For customers, interoperability could mean choosing one preferred Account Aggregator to manage permissions for sharing financial information across participating institutions.
Krishnamoorti said the reform would also benefit financial information providers by reducing the technological integration burden associated with connecting to different aggregators. For Account Aggregators, it could create more equitable access to financial information providers.
He added that improving the customer experience around consent management would remain important, particularly with the Digital Personal Data Protection framework expected to be implemented in 2027.
The reform’s ultimate impact will depend on adoption across the ecosystem. If implemented smoothly, interoperability could make financial data sharing more convenient for consumers while helping lenders make faster, better-informed credit decisions.
DO READ: RBI's rupee defence: Special dollar window for oil firms, tighter forex derivative rules