The concept of an LEI, or Legal Entity Identifier, has been implemented on a global scale. The Global Legal Entity Identifier System (or “GLEIS”) was proposed by international regulatory authorities as a means of dealing with the worldwide financial problems. The LEI was developed to lessen the burden of establishing contact with all parties involved in a financial transaction. Under LEI, a global reference data system is built, which provides a unique identifier for every […]

RBI guidelines on regulation of Payment Gateways and Payment Aggregators The Reserve Bank of India (RBI) periodically issues guidelines on the regulation of payment gateways and payment aggregators in an effort to protect consumer interests because these entities possess significant amounts of customer data. As a financial security safeguard, the new RBI guidelines prohibit PAs and PGs from retaining customer card credentials on their database or server. Through a number of circulars that have been […]

Governor, Reserve Bank of India meets MD & CEOs of Public and Private Sector Banks On May 17 and 18, 2022, the Governor of the Reserve Bank of India met with the MDs and CEOs of select public and private sector banks. The Deputy Governors, Shri M. K. Jain and Shri M. Rajeshwar Rao, as well as a few top RBI officials, were also present at the sessions. In his opening comments, the Governor emphasised […]

The Reserve Bank of India said the new valuation norms for the perpetual additional tier 1 (AT-1) bonds of banks has led to distortions in the market. The market regulator Securities & Exchange Board of India introduced a standardised valuation regime for such perpetual bonds from April this year after concerns were raised on the pricing of AT-1 bonds. Following this, RBI analysed the bond prices of one large public sector bank and one large […]

The Reserve Bank of India has formalised the framework for payment companies outsourcing payment and settlement related activities to third party operators. The central bank’s fresh guidelines come at a time when India’s tech ecosystem has seen several high-profile cyber attacks such as those at Juspay, Upstox and Mobikwik over last year targeting customers’ payments data. As per the new rules, licensed non-bank Payment System Operators (PSOs), cannot outsource core management functions, including internal audits, […]