PhonePe returns NBFC-AA licence, will partner with other AAs in market

PhonePe Group has decided to exit the Account Aggregator (AA) sector and will collaborate with other AAs to further promote financial inclusion. The company has begun the process of returning its NBFC-AA licence to the Reserve Bank of India (RBI) and will gradually shut down its AA operations.

The service enabled users to securely share their financial data, such as bank statements, insurance policies, and tax records, with regulated Financial Information Users (FIUs) for purposes like loan applications, insurance purchases, and investment advisory services.