RBI enforces : RBI enforces 20-digit LEI for cross-border deals

The Reserve Bank of India (RBI) made Legal Entity Identifier (LEI) mandatory for cross-border transactions for capital or current account transactions of Rs 50 crore and above, from October 1 next year. The LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide to improve the quality and accuracy of financial data systems.

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The identifier norm has been introduced in a phased manner for participants in the over the counter (OTC) derivative, non-derivative markets, large corporate borrowers, and large value transactions in centralised payment systems. Starting October 1, 2022, banks will have to obtain the `LEI` number from the resident entities (non-individuals) undertaking any capital or current account transactions. For LEI holders, it would be mandatory to furnish the number in all transactions irrespective of the transaction size.

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