What is Sahamati?Sahamati is an umbrella body or collective of account aggregators that will allow individuals and small businesses to share digital financial services data with a third party. It will essentially act as a common platform for capturing all your financial details in one place. Initially, it will be used purely in the financial sector. Later, it is proposed to be deployed for use in telecom, healthcare and other sectors as well.
How will it work?Let’s say you are seeking a loan from a bank or submitting an application for a life insurance policy. Before sanctioning the loan or issuing the policy, the bank or insurance company typically seeks your financial information, such as bank account data, salary information, any previous repayments or claims history. Today, you have to physically arrange for this information from multiple sources. Sahamati, the account aggregator you sign up with, will facilitate access to all this information at one place. It will have access to multiple financial information providers that include banks, mutual funds, insurance providers and the income tax department. When you open an account with a financial intermediary, it will initiate a consent request for information sharing by sending you a request through the account aggregator. The aggregator will ensure requested data is shared with the concerned intermediary only after consent is obtained from the user through its own app. This will be similar to how UPI applications seek authorisation for a collect request. The account aggregator’s fees will be borne by the seeker of the financial information.
Will I have any control over how my data is shared?This platform aims to empower individuals by giving them more control over the use of their data. The user registering an account with the aggregator will be able to grant or revoke consent to share data from any accounts with any intermediary. You will retain the power to choose the extent to which your data can be shared. For instance, if you have four bank accounts, you can choose to give access to data from only one or two. Also, you will be able to choose the period for which the data can be shared with the service provider.
How does this benefit you?This framework seeks to make it easier for individuals to collate and share financial information stored with multiple intermediaries. You don’t have to physically collect information from websites of different intermediaries. With the help of the aggregator, you could get a loan processed within minutes, or have your insurance policy or mutual fund units issued without running around for papers.
This will be particularly useful when enlisting the services of a financial adviser, who needs a bird’s eye view of your finances. For financial information users, the framework will reduce the paper trail and bring down turnaround time. However, for this to work effectively, all financial services providers will have to be on the platform. Currently, it is not mandatory for every entity to participate. So if your service provider is not registered, your data may not get captured entirely.
Will your data be protected?The main concern with such extensive data sharing will be whether your data will remain secure and not get compromised. Experts say the platform will be completely safe and secure. Account aggregators claim to be ‘data blind’—they merely facilitate transfer, not storing, of customer data. They won’t have access to your data that is transmitted. They will also not be allowed to resell the data. Besides, the data transmitted will be fully encrypted.
Who will be the aggregators?This platform will be supported by the new breed of non-banking financial institutions created by the RBI under the account aggregator (NBFC-AA) model. These are entities that function as an account aggregator, providing information on various accounts held by a customer in different financial intermediaries.
So far, six account aggregators have received in-principle approval from the RBI for the data-sharing framework. These are CAMS FinServ, Cookiejar Technologies (Product named Finvu), FinSec AA Solutions Private (OneMoney), Jio Information Solutions National E-Governance Services Asset Data and Yodlee Finsoft. These entities are currently awaiting final approval from the RBI to roll out their services.