economics medium MCQ

The 'Account Aggregator' (AA) framework in India's digital financial ecosystem primarily serves to:

  1. Aggregate small savings from rural post offices into a single national fund
  2. Enable secure, consent-based sharing of a user's financial data across different regulated financial institutions
  3. Act as a credit rating agency for large corporate borrowers
  4. Pool the non-performing assets of all commercial banks for auctioning

Answer: Enable secure, consent-based sharing of a user's financial data across different regulated financial institutions

The AA system revolutionizes credit access by eliminating the need for physical paperwork. It acts as a digital data blind-pipe that allows a customer to securely share their bank statements, tax returns, and investment records from one institution (the Financial Information Provider) to another (the Financial Information User, like a lender) via explicit digital consent, enabling instant, cash-flow-based loan approvals for MSMEs and individuals.

Topic Indian Economy - Digital
Exam Relevance Banking, UPSC Prelims, SSC
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