The Account Aggregator (AA) framework in India is transforming how individuals and businesses manage and share their financial data – but the success of this system is powered not just by regulation, but by industry collaboration led by Sahamati, the not-for-profit collective at the heart of the AA ecosystem. While the Reserve Bank of India (RBI) licenses Account Aggregators, it is Sahamati that brings together banks, NBFCs, fintechs, and technology players to ensure the framework runs smoothly, securely, and at scale. Understanding Sahamati’s role is essential to understanding how India is building one of the world’s most advanced, consent-based financial data-sharing networks.
Sahamati is a member-driven industry collective founded in 2019 to support the implementation and growth of India’s Account Aggregator framework. It is not a regulator but acts as a facilitator, standard-setter, and ecosystem enabler.
Key purpose:
To ensure that all financial institutions and fintech players follow common standards so that secure, consent-based data sharing works seamlessly across India.
When the AA framework was announced, it was clear that success would depend on strong collaboration between financial institutions. Each bank, NBFC, and fintech needed to integrate into a common set of standards so that data could move securely and consistently. To achieve this, a neutral body was required to support, coordinate, and guide implementation. Sahamati was created in 2019 with this mission.
It operates as a member-driven alliance that promotes awareness, sets best practices, and provides technical guidance. Instead of individual players building disconnected systems, Sahamati ensures interoperability across the entire ecosystem. This prevents fragmentation and builds trust among lenders, borrowers, and regulators.
Sahamati is not a regulator. It does not issue licenses or enforce compliance. Instead, it works as a facilitator to ensure that the AA framework runs smoothly. Its key functions include:
By focusing on collaboration, Sahamati ensures that the ecosystem grows inclusively and consistently.
One of Sahamati’s biggest contributions is encouraging participation among banks, NBFCs, and other financial players. Early adoption was slow, as many institutions were hesitant to invest in new technology without clarity on benefits. Sahamati played a role in addressing this hesitation by:
Over time, this helped build momentum. Today, most large banks and many NBFCs are part of the AA ecosystem, with Sahamati acting as the bridge that brings them together.
A framework like AA can only succeed if consumers trust it. Sahamati has worked to build awareness campaigns that explain concepts like consent-based data sharing and encryption in simple terms. By demystifying the technology, it helps individuals and SMEs understand that their data remains safe and under their control.
For example, Sahamati provides FAQs, guides, and even consumer-facing educational material that explains how to give and revoke consent. It also ensures that all participants follow a standard consent flow so that users have a consistent experience regardless of which AA they use.
A major part of Sahamati’s role is ensuring that all participants in the ecosystem speak the same technical language. Without common standards, interoperability would break down, and data flows would be unreliable. To prevent this, Sahamati has developed:
This approach makes the system scalable and ensures that even as new players join, the ecosystem remains stable and reliable.
To ensure that decisions reflect the needs of all participants, Sahamati has set up multiple working groups. These include representatives from banks, fintechs, NBFCs, and technology providers. Each group focuses on specific issues like security, legal compliance, or technical development.
Through this collaborative governance, the ecosystem evolves in a way that balances innovation with stability. No single institution dominates the decision-making, which strengthens trust in the framework.
By giving all stakeholders a voice, Sahamati ensures that the AA system is built on consensus and mutual benefit rather than competition alone.
Despite its success, Sahamati has had to navigate multiple challenges. One of the biggest is driving awareness beyond large urban banks to smaller institutions and regional players. Many of these institutions lack the technical resources to adopt new systems quickly.
Another challenge is consumer education. While the AA framework is designed to be simple, many individuals are still unfamiliar with terms like consent managers and data portability. Building confidence among end-users remains an ongoing effort.
Sahamati also faces the task of keeping the ecosystem aligned as technology evolves. New fintech innovations, changes in regulation, and cybersecurity threats all require continuous updates to standards and practices.
Small businesses are among the biggest beneficiaries of the AA framework. Sahamati’s role in building standards and encouraging adoption has made it easier for SMEs to access formal credit. With verified GST returns, bank statements, and transaction histories shared securely through AAs, lenders can assess SME creditworthiness more quickly.
By simplifying the flow of data, Sahamati indirectly supports financial inclusion. SMEs that were once excluded due to lack of documentation can now prove their eligibility with digital records. This helps them access working capital, expand operations, and compete with larger enterprises.
Looking ahead, Sahamati’s role will continue to expand as the AA ecosystem grows. More sectors, such as insurance, securities, and pensions, are expected to join. This will require even greater coordination across industries.
Sahamati is also likely to play a role in international discussions on data portability and consent-based systems. India’s AA framework is among the first of its kind in the world, and Sahamati’s experience can serve as a model for other countries exploring similar initiatives.
Ultimately, Sahamati is not just an enabler but also a guardian of the principles that underpin the AA ecosystem: consent, transparency, and inclusivity. Its work ensures that the framework does not just remain a regulatory idea but becomes a functional, widely adopted reality.
Sahamati is a not-for-profit collective that supports the implementation of the Account Aggregator framework in India by coordinating among financial institutions, fintechs, and technology providers.
No. Sahamati is not a regulator. It does not issue licenses or enforce compliance. Instead, it acts as a facilitator and standard-setter for the ecosystem.
Sahamati was created to ensure interoperability, promote awareness, and provide technical and legal frameworks for the AA system so that all stakeholders could work together effectively.
It provides onboarding toolkits, creates awareness of use cases, and ensures that integration with the AA system is smooth and consistent across players.
Through awareness campaigns, FAQs, and standard consent flows, Sahamati helps consumers understand that their data is shared securely and only with their permission.
Yes. Sahamati develops APIs, security protocols, and legal templates that all ecosystem participants use, ensuring interoperability and safety.
Challenges include building awareness among smaller institutions, educating consumers about consent-driven systems, and keeping standards updated with technological change.
Sahamati’s role in standardization and adoption helps SMEs share verified data with lenders, improving their chances of accessing formal credit quickly and securely.
Yes. As the AA system expands into insurance, pensions, and securities, Sahamati’s coordination role will also extend to these sectors.
The long-term vision is to ensure that the AA ecosystem remains inclusive, transparent, and scalable, while also serving as a global model for consent-based data-sharing systems.
The role of Sahamati in building the AA ecosystem cannot be overstated. By acting as a facilitator, educator, and standard-setter, it ensures that India’s consent-driven financial data-sharing model works effectively for institutions and consumers alike. As adoption grows and new sectors join, Sahamati’s influence will only deepen, shaping not just the AA framework but the future of digital finance in India.
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