There are several types of paperwork for opening a new account or taking a loan in the bank. Signed documents have to be submitted not only in banks but also for any kind of financial transactions such as buying life insurance policies, investing in mutual funds, shares, etc. This entire process also takes time and there is a risk of fraud along with data theft. But, now it’s going to be a thing of the past. A digital Sahmati Platform has been prepared under the leadership of Nandan Nilekani, former chairman of the Unique Identification Number Authority of India (Aadhaar).
In this, consumers have been given the flexibility to easily share their required documents. At the same time banks, insurance companies, fund houses will be able to complete loans, investment-related work without completing the paperwork. The report is presented on financial transaction ‘Sahmati’ will be simple and secure with the digital platform.
This forum created on the initiative of RBI
In September 2016, the Reserve Bank of India (RBI) proposed setting up an account aggregator. The aim was to create a digital platform that could meet all financial needs from a single platform. The original goal was to help general consumers and businesses with account aggregators secure transactions and share their financial data with third parties. After this, work on this began.
It has cooperation among four major financial regulators of the country, which includes Reserve Bank of India (RBI), Indian Securities and Exchange Board (SEBI), Insurance Regulatory and Development Agency (ERDA) and Provident Fund Regulatory and Development Agency (PFRDA). By the name of ‘Sahmati’, which has now come in front of everyone.
Benefits of Sahmati Platform
The ‘Sahmati Platform‘ is an account aggregator. Through this, if you are preparing to invest in a new financial transaction or investment, then KYC (Know your customer) and the need for a signed document will not have to be given to the bank or mutual fund house.
The bank with which you allow ‘consent’ to share data will share your data with it in a few minutes. For example, if you want to take a loan from the bank and the bank asks for your account details, then you will have to give it ‘consent’ to the bank that it will provide your account information to the bank. Similarly, your information in investing in mutual funds, buying insurance will be provided to that fund house or insurance company. In this entire process, you will have the right to decide who you want to share your data with.
No longer possible to tamper with your data
The biggest benefit of sharing of data through ‘Sahmati’ will not be possible to tamper with consumers’ data. This is because the data of any person will be sent to the financial information provider from the financial information provider in the encrypted language.
With this, the account aggregator platform will also not have access to the data. At the same time, the sharing of data without the approval of the consumer will not be possible. The consumer has the right to consent to data sharing, review, audit and how much data will be shared. He can also cancel data sharing.
Financial fraud will be reduced with Sahmati Platform
The use of fake documents in financial transactions is fraudulent. Many such cases have come up in recent times in which large loans have been taken from the bank on fake documents. The introduction of data sharing through Sahmati Platform will help to completely stop the use of fake documents as it will be possible to share the data of the same person or institution that would be in real. This will benefit not only consumers but also financial institutions.
Will easily make financial plans with Sahmati Platform
If you want to make your own financial plan, then get help from a financial planner. Currently, a financial planner asks for information about all the investments made so far. You send all documents by mail or via WhatsApp. It takes a lot of time. But through ‘Sahmati’ you will be able to easily share all your data with that financial plan in a few minutes. It will also take less time and help in making the right plan.
Discipline will come in the financial market
Financial experts say that the coming of ‘Sahmati Platform’ will bring discipline in the financial market. With this, financial companies will get the right data easily, so that they will be able to complete their work faster. This will accelerate the work of loans, loans, financial inclusion, investment, etc. Banks or financial institutions will be able to complete their work within a time limit.
Health and the telecommunications sector
A statement issued by the ‘Sahmati Platform’ states that the account aggregator (AA) model will be implemented in the financial sector first. It can then be applied in telecommunications, healthcare, and other important sectors. Significantly, the work for this digital model was started four years ago after the approval of RBI, SEBI, IRDA, and PFRD.
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