What changed
RBI has amended the Master Direction on NBFC-Account Aggregators to substitute 'Pension Fund' with 'Central Recordkeeping Agency' as the Financial Information Provider. This follows PFRDA's recommendation, recognizing that CRAs hold subscriber balance data under NPS.
What it means for you
Banks and lenders using the AA framework can now access NPS subscriber data through CRAs instead of pension funds, improving data accuracy for credit assessments. This streamlines the flow of pension-related financial information, potentially enabling faster loan processing for NPS subscribers.
What you must do
- Update internal AA system configurations to recognize CRA as the FIP for NPS data.
- Review existing data-sharing agreements with AAs to ensure compliance with the revised FIP definition.
- Train credit assessment teams on the new data source for NPS subscriber information.
Who it affects
All regulated entities using the Account Aggregator framework, NBFC-Account Aggregators, Banks and lenders relying on NPS data for credit decisions
What is the key change in this notification?
RBI has replaced 'Pension Fund' with 'Central Recordkeeping Agency' as the Financial Information Provider in the Account Aggregator ecosystem, as per notification dated October 26, 2023.