Entities to require LEI for large value transaction via RTGS, NEFT from FY22

Mumbai, Jan 5 (IANS) The 'Legal Entity Identifier' system will now be applicable for payment transactions of value Rs 50 crore and above undertaken by entities using Reserve Bank-run centralised payment systems from April 1, 2021.The LEI, which is a 20-digit number used to uniquely identify parties to financial transactions worldwide, will be required to use the Real Time Gross Settlement and National Electronic Funds Transfer.LEI was conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the global financial crisis.It was 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.
--IANS rv/sn/vd