UPI news Update:
BG Mahesh, CEO of Sahamati, stresses the significance of the Account Aggregator (AA) beyond mere addition, highlighting its pivotal role in addressing the issue of non-standardized and easily accessible financial data. Sahamati, a Bengaluru-based not-for-profit alliance, is dedicated to promoting and bolstering the AA ecosystem in India. Under the regulatory framework set forth by the Reserve Bank of India since September 2021, participation in the AA ecosystem is restricted to entities regulated by financial authorities, as emphasized by Mahesh.
UPI Growth
Currently, approximately 70 million individuals have consented to share their data, with around 10 million new consents generated monthly, as disclosed by the CEO of Sahamati. Users retain full control over their data and must explicitly grant permission for its sharing.
Regarding loan disbursal between 2021 and 2023, BG Mahesh notes that AA has facilitated loans totaling around 20,000 crores, with approximately 38 to 40 percent directed towards small businesses. Additionally, Mahesh highlights an intriguing observation wherein feedback from Financial Information Users (FIUs), particularly lenders, indicates a reduction in fraud rates from bank statements to zero since the adoption of AA.
Mahesh underscores the regulatory framework for entering the AA ecosystem, stating that entities registered and regulated automatically qualify for participation, without requiring additional approvals.
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Presently, over 2 billion accounts have been activated to share data, with 1.5 billion accounts from banks, showcasing the scalability of the Indian Data Protection Infrastructure (DPI). Mahesh elaborates on how the incorporation of account aggregators has significantly reduced the turnaround time for loan disbursal to as low as 30 minutes, consequently boosting lending among Micro, Small, and Medium Enterprises (MSMEs). He emphasizes that entities should exclusively agree to share financial information through AA.
Furthermore, Mahesh acknowledges the role of Fintechs, particularly Technology Service Providers (TSPs), in facilitating the implementation and expansion of AA.
