Q.3 Borrowers in the country have been underserved because of the preference for collateralized loans. How the account aggregator framework announced by the RBI seeks to deal with the problems faced by borrowers and lenders? (10 Marks)

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https://www.livemint.com/opinion/online-views/account-aggregators-could-help-the-country-democratize-credit-11629650315764.html
In the intro, mention the preference for collateralized loans in India.
In the body, mention the challenges faced by lenders in determining the creditworthiness of the customers and issues with the cash-flow based methods. Next, mention the important role account aggregators could play in this regard by offering to deal with the concerns of privacy and transparency and ease.
Conclude by mentioning the potential of such a framework in transforming the credit space in India.

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