PhonePe gets RBI approval for account aggregator services

PhonePe Account Aggregator Pvt Ltd, a wholly-owned subsidiary of PhonePe Group, has received an inprinciple approval from the Reserve Bank of India to operate as an account aggregator, it said in a release.

The licence will permit PhonePe to launch its account aggregator platform that will enable free and instant exchange of financial data between the financial information users and financial information providers with due consent from customers, the company said.

"We are looking forward to working closely with all the industry stakeholders to take forward the Reserve Bank of India’s vision of driving deeper financial inclusion across the country," said Rahul Chari, the chief technology officer and co-founder of PhonePe. PhonePe is a digital payments platform with over 300 million registered users.

The account aggregator framework enables individuals, small and mid-sized businesses to avail of services such as sharing their financial information digitally with regulated financial institutions such as banks, non-banking financial companies, among others, within a secure framework.

The account aggregator framework is aimed at eliminating the need to collect or submit physical documents to get loans or access other financial products and services.

PhonePe on Thursday said it is processing almost USD 1.5 billion transactions a month, and about 80 per cent of its users are from tier-II cities.

PhonePe can launch its account aggregator platform that will enable instant exchange of financial data between financial information users and providers