PB Fintech Receives RBI Approval to Launch its "Account Aggregator" Business

Nitin Konde, Varun Bhardwaj

Oct 23, 2024 — 3 min read

PB Fintech Secures RBI Approval for New Account Aggregator Business

On 21 October 2024, PB Fintech announced that its wholly-owned subsidiary, PB Financial Account Aggregators Private Ltd, had received a "Certificate of Registration" (CoR) from the Reserve Bank of India (RBI) to begin operating as an "Account Aggregator." Subject to the RBI-mandated restrictions outlined in the CoR, the Wholly Owned Subsidiary may operate as a non-banking financial institution without taking deposits from the general public.

In a filing with the stock exchanges, PB Fintech stated that PB Financial Account Aggregators Private Ltd is now qualified to operate as an account aggregator following the CoR approval. The CoR will go into effect on October 18, 2024.

Managing Body

Policybazaar, an insurance aggregator, and Paisabazaar, a credit marketplace, are both operated by PB Fintech, the primary entity. In January 2023, the RBI gave PB Financial Account Aggregators in-principle authority to launch their account aggregation service. PB Fintech established a fully-owned subsidiary, PB Financial Account Aggregators, in February 2022 and submitted an application to the RBI to get a "CoR" as an NBFC-AA. Debit cards, credit cards, cardless EMIs, UPIs, bank transfers, e-wallets, and e-mandates are just a few of the payment options that payment aggregators allow their clients to accept.

For the quarter ending June 30, 2024, PB Fintech recorded a consolidated net profit of INR 59.98 crore, compared to a net loss of INR 11.90 crore for the same period in the previous fiscal year. For the third consecutive quarter, the business turned a profit and stayed in the black in the June 2024 quarter. PB Fintech declared a net profit of INR 60.19 crore for the March 2024 quarter. In the quarter ending December 2023, PB Fintech reported a net profit of INR 37.2 crore.

Current Account Aggregator Scenario in India

With the accreditation, PB Fintech becomes an NBFC-AA, joining the ranks of companies like Perfios, Setu, and DigiO.

One component of the India Stack is the account aggregator framework. Its goal is to make it possible for a system of financial data exchange to send client information securely and with their express agreement. Customers can choose how their financial information is shared by voluntarily registering with an AA.

94 financial institutions have implemented the account aggregator framework as both Financial Information Provider (FIP) and Financial Information User (FIU) as of June 30, 2024. 353 financial institutions have launched as FIU, whilst 60 financial institutions have launched as FIP.

PB Fintech received its NBFC-AA certification while simultaneously attempting to enter the payment aggregation market. The business founded PB Pay earlier this year, and in March 2024, it submitted an application for a payment aggregator licence.

In addition to this, PB Fintech wants to expand beyond its core financial services industry. Yashish Dahiya, the group CEO of PB Fintech, stated last month that the company is thinking of investing $100 million all at once to enter the healthcare industry. After receiving board approval, the corporation will use the investment to purchase a 30% share in a new healthcare business.