RBI enforces 20-digit LEI for cross-border deals above Rs 50 crore

The Legal Entity Identifier (LEI) number is used to uniquely identify parties to financial deals worldwide to improve quality and accuracy of financial data systems

The Reserve Bank of India (RBI) on Friday 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.  

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. The LEI numbers are maintained in a global LEI database available on the website of the Global Legal Entity Identifier Foundation (GLEIF).

LEI has been introduced by the Reserve Bank in a phased manner for over the counter (OTC) derivative, non-derivative markets, large corporate borrowers and large value transactions in centralised payment systems.

Banks will have to obtain LEI numbers from local companies undertaking capital or current account transactions of Rs 50 crore and above, for each transaction.

For firms with LEI, it is mandatory to furnish the LEI number in all transactions of that entity, irrespective of transaction size.