Bank Deposits to Join Investments in One Consolidated Statement From January

Keeping track of money spread across bank accounts, mutual funds and stock market investments could soon become much simpler.

From January 1, demat account holders will be able to see their bank deposits alongside their investments in a single Consolidated Account Statement, or CAS, following a new initiative announced by the Reserve Bank of India.

At present, the monthly statement brings together mutual funds, securities held in demat accounts and National Pension System investments. Bank deposits, despite being a major part of household savings, sit outside that view.

The RBI now wants to bring them in.

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Bank Deposits to Become Part of CAS

Under the new arrangement, SEBI-regulated depositories will be able to include information about bank deposit accounts in the CAS through the Account Aggregator framework.

That means a person receiving the statement could eventually get a much broader picture of their financial assets without checking different platforms separately.

The RBI plans to initially bring in deposit information from banks that are already connected to the system. Other banks are expected to be added gradually.

The measures are expected to be implemented by December 31, paving the way for the expanded statements from January 1.

Why the RBI Is Making the Change

For RBI Governor Sanjay Malhotra, one of the practical benefits is making financial assets easier to find.

Families can sometimes struggle to trace deposits after the death of an account holder, particularly when money is spread across different banks.

A single statement showing deposits alongside other investments could make those assets easier to keep track of.

The change could also help individuals get a clearer sense of how their savings are distributed across bank deposits, shares, bonds, mutual funds and retirement investments.

What Does the Statement Already Show?

CAS is already familiar to many stock market and mutual fund investors.

It is sent to investors’ registered email addresses and consolidates investments linked to a Permanent Account Number.

The statement can include securities held in demat form, mutual fund investments and NPS holdings. Where applicable, information linked to e-insurance accounts can also be available.

Bank deposits have so far remained outside that consolidated picture.

Bringing them in would make the statement more representative of an individual’s overall financial holdings.

Account Aggregators Are Also Getting an Upgrade

The RBI is making another change alongside the expanded CAS.

Account Aggregators will become interoperable.

At present, financial information available through different Account Aggregators can remain fragmented. Under the new system, customers will be able to access and share information available across different providers through a single Account Aggregator of their choice.

In simpler terms, a person would not need to work through multiple aggregators merely because different financial institutions are connected to different platforms.

Importantly, the system remains consent-based. Account Aggregators facilitate the transfer of financial information between institutions only with the customer’s permission.

People who do not have demat accounts will also continue to be able to obtain and share a consolidated view of their financial information through Account Aggregators.

Account Aggregator Usage Has Grown Rapidly 

The changes come as India’s Account Aggregator ecosystem becomes much larger. 

As of August, 338.04 million accounts had been linked through the framework, up 24% from 272.46 million in February. 

Cumulative fulfilled consents stood at 566.26 million. 

There are currently 17 RBI-licensed Account Aggregators operating in India, according to the report. 

One Statement Could Make Financial Tracking Easier

The immediate benefit of the RBI’s move is not a new financial product or investment option. It is visibility.

A person with money spread across bank accounts, mutual funds, shares, bonds and retirement investments may currently have to look in several places to understand the full picture.

Adding deposits to CAS will not automatically capture every financial asset from day one, particularly as banks are expected to be onboarded over time. But it moves the system closer to giving households a single view of a much larger portion of their financial lives.

From January, that monthly investment statement could therefore become considerably more useful not because it changes where people’s money is held, but because more of that money will finally be visible in one place.