Home / News / India /  RBI extends Legal Entity Identifier for larger borrowers of NBFCs, UCBs

RBI extends Legal Entity Identifier for larger borrowers of NBFCs, UCBs

The RBI further advised that non-individual borrowers enjoying aggregate exposure of  ₹5 crore and above from banks and FIs shall be required to obtain LEI codes as per the given timeline.Premium
The RBI further advised that non-individual borrowers enjoying aggregate exposure of 5 crore and above from banks and FIs shall be required to obtain LEI codes as per the given timeline.

  • In a notification, the central bank said that on a review, it has been decided that the guidelines on LEI stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs)

The Reserve Bank of India (RBI) has extended the guidelines on Legal Entity Identifier (LEI) to large borrowers of NBFCs and Primary (Urban) Co-operative Banks (UCBs).

In a notification, the central bank said that on a review, it has been decided that the guidelines on LEI stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).

The RBI further advised that non-individual borrowers enjoying aggregate exposure of 5 crore and above from banks and financial institutions (FIs) shall be required to obtain LEI codes as per the given timeline.

As per the timeline, the borrowers having exposure of 25 crore are required to obtain LEI by April 30, 2023.

The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions globally. It was conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the global financial crisis.

It said that borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) shall not be sanctioned any new exposure nor shall they be granted renewal/enhancement of any existing exposure.

However, departments/agencies of Central and State Governments (not Public Sector Undertakings registered under Companies Act or established as Corporation under the relevant statute) shall be exempted from this provision, the central bank added.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout