The Reserve Bank of India (RBI) Make Legal Entity Identifier (LEI) Mandatory for cross-border transactions for capital or current account transactions of Rs 50 crore and beyond that, from 1st October of the following 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).
The identifier norm has been introduced in a phased manner for participants in the over the counter (OTC) derivative, non-derivative markets, large corporate borrowers, and large value transactions in centralised payment systems. Starting October 1, 2022, banks will have to obtain the `LEI` number from the resident entities (non-individuals) undertaking any capital or current account transactions. For LEI holders, it would be mandatory to furnish the number in all transactions irrespective of the transaction size.
Important facts for all competitive exams:
25th Governor of RBI: Shaktikanta Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.