News

Introduction of Legal Entity Identifier for Large Value Transactions in Centralized Payment Systems

RBI vide notification no. RBI/2020-21/82 dated January 05, 2021 has introduced the Legal Entity Identifier for Large Value Transactions in Centralized Payment Systems.

  • The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide.
  • LEI has been 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.
  • It has been decided to introduce the LEI system for all payment transactions of value ₹50 crore and above undertaken by entities (non-individuals) using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
  • In India, LEI can be obtained from Legal Entity Identifier India Ltd. (LEIL) (https://www.ccilindia-lei.co.in), which is also recognised as an issuer of LEI by the Reserve Bank

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12010&Mode=0