RBI starts LEI for large value transactions in centralised payment systems

Legal entity identifier will apply to all RTGS and NEFT transactions of Rs 50 cr and above; LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide

The Reserve Bank of India (RBI) on Tuesday introduced the legal entity identifier (LEI) in a phased manner in the over-the-counter derivative and non-derivative markets as well as for large corporate borrowers.

It will be introduced for all payment transactions of Rs 50 crore and above by entities using RBI’s Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide.

In order to prepare for the full scale introduction of LEI, banks have to advise entities who undertake large value transactions (Rs 50 crore and