RBI Extends LEI guidelines to large borrowers of NBFCs & Banks

The Reserve Bank of India is warning that it will be implementing new rules to provide legal entity identification (LEI) numbers for non-individual corporations with outstanding loans over $5 million. The changes were announced this week and affect companies who have received funding from domestic or international sources since May 2018, as well as those whose debt exceeds these limits but does not yet meet qualifications under current regulations—this includes mostly large businesses operating internationally though they may also include some smaller ones listed on Indian exchanges too.

The LEI is an important identifier that helps bring transparency and trust to financial transactions. It currently mandated by over 116+ laws globally, this will soon expand with India leading the way.

The introduction of the LEI into financial transactions will bring about greater transparency and trust, clearly identifying who is whom in any given transaction. This can be seen as an example for other countries to follow suit with India leading their charge!

​With India leading the way, it's time to bring more transparency and trust in financial transactions. The LEI will help identify who is doing business with whom so that no one can pretend they're someone else or hide their true nature from you.

The Reserve Bank of India (RBI) has recently issued new guidelines that will affect large borrowers of NBFCs and Primary Co-Operative Banks. If you are not an authorized LEI issuer, then your company may not be granted any more exposure or renewal/enhancement on existing loans unless they obtain a legal entity identifier from RBO marketplace creditors in order to do business with them.

​The Reserve Bank of India is requiring all companies with an exposure to lenders over a certain amount to obtain an LEI by April 30th 2023. If they fail, then there will be no penalty but their renewal/enhancement won't come into effect either- only private organizations are affected in this way and not Government divisions."

RBI enforces 20-digit LEI for cross-border deals above Rs 50 crore...The Legal Entity Identifier (LEI) number is used to uniquely identify parties to financial deals worldwide to improve quality and accuracy of financial data system
- The Business Standard