PB Financial Account Aggregator Private Limited (PBAA) received the Certificate of Registration (CoR) from the Reserve Bank of India (RBI) on October 21.
Thanks to this, it can carry out the activity of a non-bank 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.
Fintech major PB Fintech, a wholly-owned subsidiary of 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 the subsidiary can start/carry on the business of a non-bank 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 undertake to retrieve or collect financial information relating to its customers and consolidate, organize and present this information. The information may not be used for any other purpose.
The fintech company got approval in principle from the RBI to set up the company a year later, in January 2023.
With this certification, PB Fintech joins the ranks of Perfios, Setu, DigiO, among others, as an NBFC-AA.
Account aggregation framework is part of India Stack. It aims to establish 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 main entity types:
- 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 data for services such as lending and investment advice.
As of June 30, 2024, 94 financial institutions were operationalized on the account aggregation framework as FIPs and FIUs. While 60 financial institutions were commissioned as FIPs, 353 financial institutions were commissioned as FIUs.
The NBFC-AA certification for PB Fintech comes at a time when it is also working to move into the payments aggregation business. Earlier this year, the company formed a PB Pay subsidiarywhich applied for a payments aggregator license in March 2024.
Additionally, PB Fintech is also looking to go beyond its financial services business. Last month, Yashish Dahiya, CEO of PB Fintech Group, said the company was plans to foray into healthcare with a one-time investment of $100 million. Through this investment, the company will acquire a 30% stake in a new healthcare company after obtaining approval from its board of directors.
Financially, PB Fintech announced a consolidated result net profit of INR 59.98 Cr in Q1 FY25 compared to 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.