PB Fintech Subsidiary Gets Account Aggregator Licence

Fintech major PB Fintech’s wholly owned subsidiary PB Financial Account Aggregator Private Limited (PBAA) has received a Certificate of Registration (CoR) from the Reserve Bank of India (RBI). 

In an exchange filing, the company said that the subsidiary can commence/ carry on the business of a non-banking financial institution as an account aggregator without accepting public deposits. 

The fintech company incorporated the NBFC with a paid-up share capital of INR 5 Cr in February 2022. As per PB Fintech’s prior filing, PBAA will engage in retrieving or collecting financial information pertaining to its customers and consolidating, organising and presenting such information. The information cannot be used for any other purposes. 

The fintech company got the RBI’s in-principle nod to set up the business a year later in January 2023. 

With the certification, PB Fintech joins the ranks of Perfios, Setu, DigiO, among others, as an NBFC-AA. 

The account aggregator framework is a part of the India Stack. It aims to enable a financial data-sharing system for secure transfer of customer information with their explicit consent. Consumers can voluntarily register with an AA, allowing them to manage how their financial data is shared.

The framework consists of two primary types of entities: 

• Financial Information Providers (FIPs): These include banks, NBFCs, asset management companies, and other financial institutions.
• Financial Information Users (FIUs): These are regulated entities that use the data for services like lending and investment advice.

As on June 30, 2024, 94 financial institutions have gone live on the account aggregator framework as both FIP and FIU. While 60 financial Institutions have gone live as FIP, 353 financial institutions have gone live as FIU.

The NBFC-AA certification for PB Fintech comes at a time when it is also working to venture into the payment aggregation business. Earlier this year, the company incorporated a subsidiary PB Pay, which applied for a payment aggregator licence in March 2024. 

Besides this, PB Fintech is also looking to move beyond its bread-and-butter financial services business. Last month, PB Fintech’s group CEO Yashish Dahiya said that the company is considering making a foray into the healthcare space with a one-time investment of $100 Mn. With the investment, the company will acquire a 30% stake in a new healthcare company after getting approval from its board. 

On the financial front, PB Fintech reported a consolidated net profit of INR 59.98 Cr in Q1 FY25 as against a loss of INR 11.9 Cr in the year-ago quarter. Operating revenue jumped 51.8% to INR 1,010.5 Cr from INR 665.6 Cr in the year-ago quarter.

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