Mumbai, Jan 5 : The 'Legal Entity Identifier' system will now be applicable for payment transactions of value Rs 50 crore and above undertaken by entities using Reserve Bank-run centralised payment systems from April 1, 2021.

The LEI, which is a 20-digit number used to uniquely identify parties to financial transactions worldwide, will be required to use the Real Time Gross Settlement and National Electronic Funds Transfer.

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.

It was introduced by the Reserve Bank in a phased manner for participants in the over the counter (OTC) derivative and non-derivative markets as also for large corporate borrowers.

Entities to require LEI for large value transaction via RTGS, NEFT from FY22

Liked This Article? Be The First To Share it!

Class

Send