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No credit to corporates without identification number RBI

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No credit to corporates without identification number RBI
The Reserve Bank of India (RBI) on Thursday said corporate borrowers who do not obtain the legal entity identifier (LEI) number from banks won´t be given credit.
However, the schedule for getting the LEI number is spread out till December 2019 and depends on the exposure.The 20 digit unique code will be used to maintain a  credit database with the RBI´s Central Repository of Information on Large Credits to facilitate assessment of aggregate borrowing by corporate groups, and monitoring of the financial profile of an entity or group.
The central bank had announced introducing the LEI number inaphased manner in its October policy.According to RBI norms, any corporate with exposure of more than Rs 5 crore has to obtain an LEI number.“Borrowers who do not obtain LEI as per the schedule are not to be granted renewal enhancement of credit facilities,” the central bank said in a statement on its website.
For total exposure of Rs 1,000 crore and above,acorporate entity will have to take the LEI number by March 31, 2018; between Rs 500 crore and Rs 1,000 crore by June 2018; between Rs 100 crore and Rs 500 crore by March 31, 2019; and between Rs 50 crore and Rs 100 crore by December 2019.The schedule for LEI number for exposure below this would be announced separately, the RBI said.
RBI employees stage protests on pension issu
Reserve Bank of India (RBI) employees and officers, including retirees, held rallies in all offices of the central bank on Thursday, demanding pensions be updated andafresh option to join the pension scheme in lieu of the contributory provident fund (CPF) scheme.The pension of retired employees of the central bank continues to get 50 per cent of the last pay drawn, whereas the pension for central government employees get periodically revised with every pay commission recommended wage revision, said a statement from the All India Reserve Bank Employees Association.
The central board of the RBI has been trying for the past few years to update the pension drawn by the retirees in line with central government employees, but the government remains noncommittal.The RBI governors, both Urjit Patel now and Raghuram Rajan before him, assured the government that the cost will be borne by the central bank itself, without burdening the exchequer, but the government hasn´t given its nod. Recently, Patel had written to the government to introduce the pension scheme option.

The RBI introduced the pension scheme for its employees joining after November 1990 and gave an option to existing employees to choose between the pension scheme and CPF scheme.The government then put an embargo from 2002 onwards on the RBI offering its remaining employees to switch over to the pension scheme from the CPF scheme.
The Business standard, New Delhi, 03rd November 2017

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