Legal Entity Identifier (LEI) is mandatory for Banking Transaction Above 50 Crore
RBI has specified the following introduction related to Legal Entity Identifier (LEI Code) in recent Notification/Circular – RBI/2020-21/82
The Legal Entity Identifier (LEI Code) is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.
EI has been introduced by the Reserve Bank in a phased manner for participants in the over the counter (OTC) derivative and non-derivative markets as also for large corporate borrowers.
3. It has now been decided to introduce the LEI system for all payment transactions of value ₹50 crore and above undertaken by entities (non-individuals) using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
4. In preparation for the wider introduction of LEI across all payment transactions, member banks should:
- advise entities who undertake large value transactions (₹50 crore and above) to obtain LEI. (Legal Adda Provides Instant LEI Registration Consultancy across India)
- include remitter and beneficiary LEI information in RTGS and NEFT payment.
- maintain records of all transactions of ₹50 crore and above through RTGS and / or NEFT.
Connect our Representative for LEI Registration.
