The Reserve Bank of India (RBI) directed corporate borrowers having exposure of Rs 5 crore and above to mandatorily obtain 20-digit Legal Entity Identifier (LEI). The move is aimed at improving risk management in the wake of the huge stressed assets in the banking system.
Listing the timeline for implementing the LEI, the RBI said borrowers with fund and non-fund exposure of Rs 1,000 crore and above will have to get the unique code by March 31, 2018. Those having exposure between Rs 500 crore and Rs 1,000 crore have to obtain the LEI code by June 30 and those having between Rs 100 crore and Rs 500 crore by March 31, 2019. Borrowers with bank credit between Rs 50 crore and Rs 100 crore have been given time to comply with LEI provision by December 2019. LEI is a 20-digit unique code to identify parties to financial transactions worldwide.
Legal Entity Identifier India Limited, a wholly-owned subsidiary of the Clearing Corporation of India, acts as a local operating unit (LOU) for issuing globally compatible legal entity identifiers (LEIs) in India. LEI is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction.