20-digit LEI should for cross-border transactions quickly: RBI

Starting October subsequent 12 months, firms should quote the authorized entity identifier (LEI) quantity in order to endeavor cross-border transactions of Rs 50 crore or extra, the Reserve Bank of India (RBI) stated on Friday.
The LEI is a 20-digit quantity used to uniquely determine events to monetary transactions globally to enhance the standard and accuracy of monetary information methods.
The identifier has been launched by the central financial institution in a phased method for contributors within the over-the-counter (OTC) by-product, non-derivative markets, massive company debtors and enormous worth transactions in centralised cost methods.
“In order to further harness the benefits of LEI, it has been decided that AD Category I banks, with effect from October 1, 2022, shall obtain the LEI number from the resident entities (non-individuals) undertaking capital or current account transactions of Rs 50 crore and above (per transaction) under FEMA, 1999,” the RBI stated in a round. As regards non-resident counterparts/ abroad entities, in case of non-availability of LEI data, banks could course of the transactions to keep away from disruptions, it stated.

The Reserve Bank additionally stated banks could encourage involved entities to voluntarily furnish LEI whereas endeavor transactions even earlier than October 1, 2022.
“Once an entity has obtained an LEI number, it must be reported in all transactions of that entity, irrespective of transaction size,” it added.  WITH PTI