The introduction of an LEI in India has been a step towards achieving transparency and fraud prevention. All financial borrowers, lenders as well as market participants must now have this document ready for use when transacting business with each other; it's imperative that we keep up our duty to uphold integrity by ensuring compliance across all parties involved!
For those who deal with financial transactions on a regular basis, the LEI is an essential tool that allows them to be more aware and cautious about their actions. The RBI announced in 2017 its introduction into phases for market participants across all types of OTC derivative contracts as well non-derivative merchandise such ma
A new regulation has been implemented by India's central bank - The Prevention Of Money Laundering Regulation Act 2009 which requires every person carrying out these activities (including borrowers or lenders) hold appropriate licenses regardless if they plan carry out business activity solely within country’
The LEI in India has also been introduced for all payments/transactions of value ₹50 crore and above undertaken by organisations/corporates using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
The RBI states that its members should prepare for the phased rollout of the LEI, in particular those who engage in large value transactions (+₹50 crore) and those who use payment messages such as NEFTS & RTGS.
RTGS: The LEI shall be reported in the ‘Remittance information’ field.
NEFTS: For outward debit messages, LEI information shall be provided in ‘Sender to Receiver Information’ field.
Companies in India may apply for a Legal Entity Identifier through an agent such as LEI Worldwide. Existing LEI codes may be transferred to LEI Worldwide for management and maintenance.
You can find more information from the RBI on their dedicated webpage notification here: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12010&Mode=0
Please click Register LEI in India below to obtain a new LEI, or click Transfer LEI to begin to move your existing LEI to LEI Worldwide.