PIB News Indian Economy
Account Aggregator Network: A Financial Data-sharing System
Recently India unveiled the Account Aggregator (AA) network, a financial data-sharing system that could revolutionize investing and credit, giving millions of consumers greater access and control over their financial records and expanding the potential pool of customers for lenders and fintech companies.
- Account Aggregator empowers the individual with control over their personal financial data, which otherwise remains in silos.
- This is first step towards bringing open banking in India and empowering millions of customers to digitally access and share their financial data across institutions in a secure and efficient manner.
- The Account Aggregator system in banking has been started off with eight of the India’s largest banks. The Account Aggregator system can make lending and wealth management a lot faster and cheaper.
What is an Account Aggregator?
- An Account Aggregator (AA) is a type of RBI regulated entity (with an NBFC-AA license) that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network. Data cannot be shared without the consent of the individual.
- There will be many Account Aggregators an individual can choose between.
- Account Aggregator replaces the long terms and conditions form of ‘blank cheque’ acceptance with a granular, step by step permission and control for each use of your data.
How will the new Account Aggregator network improve an average person's financial life?
- India's financial system involves many hassles for consumers today -- sharing physical signed and scanned copies of bank statements, running around to notarise or stamp documents, or having to share your personal username and password to give your financial history to a third party. The Account Aggregator network would replace all these with a simple, mobile-based, simple, and safe digital data access & sharing process. This will create opportunities for new kinds of services -- eg new types of loans.
- The individual's bank just needs to join the Account Aggregator network. Eight banks already have -- four are already sharing data based on consent (Axis, ICICI, HDFC, and IndusInd Banks) and four are going to be able to shortly (State Bank of India, Kotak Mahindra Bank, IDFC First Bank, and Federal Bank).
How is Account Aggregator different to Aadhaar eKYC data sharing, credit bureau data sharing, and platforms like CKYC?
- Aadhaar eKYC and CKYC only allow sharing of four ‘identity’ data fields for KYC purposes (eg name, address, gender, etc). Similarly, credit bureau data only shows loan history and/or a credit score. The Account Aggregator network allows sharing of transaction data or bank statements from savings/deposit/current accounts.
What kind of data can be shared?
- Today, banking transaction data is available to be shared (for example, bank statements from a current or savings account) across the banks that have gone live on the network.
- Gradually the AA framework will make all financial data available for sharing, including tax data, pensions data, securities data (mutual funds and brokerage), and insurance data will be available to consumers. It will also expand beyond the financial sector to allow healthcare and telecom data to be accessible to the individual via AA.
Can AAs view or ‘aggregate’ personal data? Is the data sharing secure?
- Account Aggregators cannot see the data; they merely take it from one financial institution to another based on an individual's direction and consent. Contrary to the name, they cannot 'aggregate' your data. AAs are not like technology companies which aggregate your data and create detailed profiles of you.
- The data AAs share is encrypted by the sender and can be decrypted only by the recipient. The end to end encryption and use of technology like the ‘digital signature’ makes the process much more secure than sharing paper documents.
Can a consumer decide they don’t want to share data?
- Yes. Registering with an AA is fully voluntary for consumers. If the bank the consumer is using has joined the network, a person can choose to register on an AA, choose which accounts they want to link, and share their data from one of their accounts for some specific purpose to a new lender or financial institution at the stage of giving ‘consent’ via one of the Account Aggregators. A customer can reject a consent to share request at any time. If a consumer has accepted to share data in a recurring manner over a period (e.g. during a loan period), it can also be revoked at any time later as well by the consumer.
If a consumer has shared my data once with an institution, for how long can they use it?
- The exact time period for which the recipient institution will have access will be shown to the consumer at the time of consent for data sharing.
How can a customer get registered with an AA?
- You can register with an AA through their app or website. AA will provide a handle (like username) which can be used during the consent process.
- Today, four apps are available for download (Finvu, OneMoney, CAMS Finserv, and NADL) with operational licenses to be AAs. Three more have received in principle approval from RBI (PhonePe, Yodlee, and Perfios) and may be launching apps soon.
Does a customer need to register with every AA?
- No, a customer can register with any AA to access data from any bank on the network.
Does a customer need to pay the AA for using this facility?
- This will depend on the AA. Some AAs may be free because they are charging a service fee to financial institutions. Some may charge a small user fee.
What new services can a customer access if their bank has joined the AA network of data sharing?
- The two key services that will be improved for an individual is access to loans and access to money management. If a customer wants to get a small business or personal loan today, there are many documents that need to be shared with the lender. This is a cumbersome and manual process today, which affects the time taken to procure the loan and access to a loan. Similarly, money management is difficult today because data is stored in many different locations and cannot be brought together easily for analysis.
- Through Account Aggregator, a company can access tamper-proof secure data quickly and cheaply, and fast track the loan evaluation process so that a customer can get a loan. Also, a customer may be able to access a loan without physical collateral, by sharing trusted information on a future invoice or cash flow directly from a government system like GST or GeM.
PIB News Indian Economy
Production Linked Incentive (PLI) Scheme for Textiles
The Government has approved Production Linked Incentive (PLI) Scheme for Textiles - for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with a budgetary outlay of Rs. 10,683 crore.
PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.
The Technical Textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc. will improve the efficiencies in those sectors of economy. Government has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. PLI will help further, in attracting investment in this segment.
There are two types of investment possible with different set of incentive structure:
- Any person, (which includes firm / company) willing to invest minimum Rs. 300 Crore in Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce products of Notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation in first part of the scheme.
- In the second part any person, (which includes firm / company) willing to invest minimum Rs. 100 Crore shall be eligible to apply for participation in this part of the scheme.
In addition, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority Industry will be incentivized to move to backward area. This scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamilnadu, Punjab, AP, Telangana, Odisha, etc.
- With this, India is poised to regain its dominance in Global Textiles Trade.
- Leveraging Economies of Scale, the scheme will help Indian companies to emerge as Global Champions.
- Help create additional employment of over 7.5 lakh people directly and several lakhs more for supporting activities.
- Scheme will also pave the way for participation of women in large numbers.
- Incentives worth Rs. 10,683 crore will be provided to industry over five years.
- It is expected that this scheme will result in fresh investment of above Rs 19,000 crore and additional production turnover of over Rs.3 lakh crore in five years.
- Higher priority for investment in Aspirational Districts & Tier 3/4 towns.
- Scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc.
Current News National National Security
C-295MW to replace ageing Avro Aircrafts
- On 8th September 2021, the Cabinet Committee on Security approved the procurement of fifty six C-295MW transport aircraft from M/s Airbus Defence and Space S.A., Spain for the Indian Air Force.
- C-295MW aircraft is a transport aircraft of 5-10 Tonne capacity with contemporary technology that will replace the ageing Avro aircraft of IAF.
- The aircraft has a rear ramp door for quick reaction and para dropping of troops and cargo.
- Sixteen aircraft will be delivered in flyaway condition from Spain within 48 months of signing of the contract and forty aircraft will be manufactured in India by TATA Consortium within ten years of signing of the contract.
- This is the first project of its kind in which a military aircraft will be manufactured in India by a private company.
- All fifty six aircraft will be installed with indigenous Electronic Warfare Suite.
Current News National National Security
NH for Emergency Landing
On 9th September, 2021 an Emergency Landing Field (ELF) was inaugurated on NH-925 at Gandhav Bhakasar Section (NH-925) South of Barmer (Rajasthan).
- Also, the event was marked with touchdown exercises by various fighter aircrafts.
- This is the first time that National Highway will be used for emergency landing of aircrafts of IAF.
- NHAI had developed a 3.0 Km section of Satta-Gandhav stretch of NH-925A from Km. 41/430 to Km. 44/430 as an Emergency Landing Facility (ELF) for Indian Air Force, which is part of newly developed Two lane paved shoulder of Gagariya-Bakhasar & Satta-Gandhav Section having total length of 196.97 Km. under Bharatmala Pariyojana.
- This project will improve connectivity between villages of Barmer & Jalore districts located on international border. The stretch being located in the western border area will facilitate the vigilance of the Indian Army as well as strengthen the basic infrastructure of the country.
- Apart from this Emergency Landing Strip, 3 helipads (size 100 x 30 metres each) have been constructed in Kundanpura, Singhania & Bakhasar villages in this project according to the requirements of the Air Force/Indian Army, which will be the basis for strengthening the Indian Army and security network on the western international border of the country.
- During normal time the ELF will be used for smooth flow of road traffic. But during the operations of ELF for Indian Air Force order, the service road will be used for smooth flow of road traffic. It has been constructed in 3.5 Km length. This Landing Strip will be able to facilitate landing of all types of Aircrafts of Indian Airforce.
News Crux Important Days/Weeks
6th to 12th September, 2021: ‘Food Processing Week’
- To commemorate 75 years of India's independence, the Government of India is celebrating the 'Azadi Ka Amrit Mahotsav.' As a part of the celebration, the Ministry of Food Processing Industries is celebrating ‘Food Processing Week’ from 6th to 12th September, 2021, under which, the Ministry is organizing various programs.
Current News Ecology & Environment Biodiversity
India’s First Dugong Conservation Reserve
Tamil Nadu state government has announced to set up India’s first dugong conservation reserve at the northern part of the Palk Bay.
- The dugong (Dugong dugon), also called the sea cow, is herbivorous mammal.
- They can grow upto three meters long, weigh about 300 kilograms, and live for about 65 to 70 years.
- They graze on seagrass and come to the surface to breathe.
- They are found in over 30 countries and in India are seen in the Gulf of Mannar, Gulf of Kutch, Palk Bay, and the Andaman and Nicobar Islands.
- Dugongs are listed as ‘Vulnerable’ on the IUCN Red List of Threatened Species.
- Internationally, dugongs are listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which prohibits the trade of the species and its parts.
- Dugongs are protected in India under Schedule 1 of the Indian Wildlife Act 1972 which bans the killing and purchasing of dugong meat.
- The loss of ‘seagrass’ habitats, water pollution, and degradation of the coastal ecosystem due to developmental activities, have made life tough for these slow-moving animals.
- Dugongs are also victims of accidental entanglement in fishing nets and collision with boats, trawlers.