RBI Introduces Legal Entity Identifier

The Reserve Bank of India on December 5, 2021 introduced the Legal Entity Identifier (LEI) for large value transactions over Rs 50 Crore in Centralised Payment Systems, which will be effective from April 1, 2021.

  • The 20-digit LEI number is used to uniquely identify parties to financial transactions worldwide while improving the quality and accuracy of financial data systems for better risk management post the global financial crisis.
  • Those seeking to obtain an LEI can reach out to any Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF). In India, RBI has given the permit to Legal Entity Identifier India Ltd. (LEIL) to issue LEI under the Payment and Settlement Systems Act, 2007.

RBI Operationalizes PIDF Scheme to Boost Digital Payments

  • The Reserve Bank has operationalised Payments Infrastructure Development Fund to create 30 lakh new touch points every year for digital payments in Tier-3 to Tier-6 centres.
  • In June last year, the RBI had announced the creation of Payments Infrastructure Development Fund (PIDF).
  • The fund intended to subsidise deployment of payment acceptance infrastructure in Tier-3 to Tier-6 centres, with special focus on the north-eastern states.
  • An Advisory Council (AC), under the Chairmanship of RBI Deputy Governor BP Kanungo, has been constituted for managing the PIDF.
  • It will be operational for a period of three years from January 01, 2021, and may be extended for two more years, depending upon the progress.
  • The objective of PIDF is to increase the number of acceptance devices multi-fold in the country.
  • The Scheme is expected to benefit the acquiring banks/non-banks and merchants by lowering overall acceptance infrastructure cost.