Page 8 - Banking Finance February 2021

RBI CORNER

Reserve Bank News

RBI forms advisory panel and to augment and reinforce transactions, the RBI asked member
supervisory skills among its regulatory banks participating in Real Time Gross
for Supervisory College and supervisory staff both at entry Settlement (RTGS) and National

The Reserve Bank of India has set up level and on a continuous basis. Electronic Funds Transfer (NEFT) to
an academic advisory council with The council's role will be to "identify advise entities who undertake large
former deputy governor N S areas where skill building/up-skilling are value transactions (Rs. 50 crore and
Vishwanathan as the chairperson to required, plan and develop curricula of above) to obtain LEI in time, if they do
advise the full-time director of the not already have one.
all programmes, benchmark the
Central Bank's College of Supervisors programmes with international Member banks should include remitter
(CoS).
standards/-best practices, and develop and beneficiary LEI information in
Members of the council include Arijit appropriate teaching methods, etc.", RTGS and NEFT payment messages.
Basu, former Managing Director of the central bank said in a statement. Further, they have to maintain records
State Bank of India (SBI); Paresh of all transactions of Rs. 50 crore and
Sukthankar, former deputy MD at RBI introduces Legal Entity above through RTGS and / or NEFT.
HDFC Bank; S Raghunath, professor at Identifier for large-value Entities can obtain LEI from any of the
IIM-Bangalore; Tathagata
Bandyopadhyay, professor at IIM- transactions Local Operating Units (LOUs)
accredited by the Global Legal Entity
Ahmedabad; and Subrata Sarkar RBI has decided to introduce the Legal Identifier Foundation (GLEIF), the body
professor at Indira Gandhi Institute of Entity Identifier (LEI) system for all tasked to support the implementation
Development Research, Mumbai. Rabi payment transactions of value Rs.50
and use of LEI.
Narayan Mishra, former executive crore and above undertaken by
director of the RBI, has been named entities (non-individuals) using the In India, LEI can be obtained from
as the director of the body. Reserve Bank-run Centralised Payment Legal Entity Identifier India Ltd. (LEIL),
The CoS has been operational in a Systems with effect from April 1. which is also recognised as an issuer of
LEI by the Reserve Bank under the
limited way since May last year, but it LEI is a 20-digit number used to uniquely Payment and Settlement Systems Act,
is now being fully operationalised. RBI identify parties to financial transactions 2007.
Governor Shaktikanta Das had first worldwide. It was conceived as a key
spoken about setting up a CoS in measure to improve the quality and RBI fines Bajaj Finance for
November 2019, partly in response to accuracy of financial data systems for
the Punjab and Maharashtra Bank Co- better risk management post the global harassment by recovery
operative Bank crisis. financial crisis. agent
The idea was to further strengthen In preparation for the wider Reserve Bank of India has imposed Rs
supervision over regulated entities, introduction of LEI across all payment 2.50 crore monetary penalty on Bajaj

8 | 2021 | FEBRUARY | BANKING FINANCE