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).
- The RBI further advised that non-individual borrowers enjoying aggregate exposure of Rs 5 crore and above from banks and financial institutions (FIs) shall be required to obtain LEI codes as per the given timeline.
- RBI 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.
- The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions globally.
- LEI 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.
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