RBI Starts LEI for RTGS and NEFT transactions – RBI starts LEI for large value transactions in centralized payment systems of Rs 50 crore and above transactions : The Reserve Bank of India (RBI) has 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.
LEI will be introduced for all payment transactions of Rs 50 crore and above by entities including Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
What is LEI ?
The Legal Entity Identifier (LEI) or LEI code or LEI numbers is an unique globally accepted identifier for legal entities participating in financial transactions. Its purpose is to help identify legal entities on a globally accessible database.
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 above) to obtain LEI in time, if they do not already have one.
Additionally, all the transactions done through RTGS and NEFT will include remitter and beneficiary LEI information and will maintain records of all transactions of ₹50 crore and above through RTGS and / or NEFT.