Legal Entity Identifier (LEI) for Borrowers
The Reserve Bank of India published a notification regarding the Legal Entity Identifier for Borrowers on 21st?April 2022.?The?guidelines on LEI stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).?
HIGHLIGHTS
??Non-Individual borrowers are advised to enjoy the?aggregate exposure of ?5?crores?and above from banks?and financial institutions (FIs)?shall be required to obtain LEI codes as per the timeline?prescribed.
??“Exposure”?shall include all fund-based and non-fund-based (credit and?investment) exposure of banks/FIs to the borrower. Aggregate sanctioned limit or outstanding balance, whichever is higher, shall be reckoned for the purpose.?
??Borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) shall not be sanctioned any new exposure nor shall they be granted renewal/enhancement of any existing exposure.
??Department?of Central and State Governments shall be exempted from this provision.
??These directions are issued under sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA and 45L of the Reserve Bank of India Act, 1934, section 30A of the National Housing Bank Act, 1987 and section 6 of the Factoring Regulation Act, 2011.
??Any exposure above Rs. 25 crores shall be obtained on or before April 30, 2023.
??Exposure above Rs. 10 crores upto Rs. 25 crores shall be obtained on or before April 30, 2024.
??Exposure?above Rs. 5?crores upto Rs. 10?crores shall be obtained on or before April 30, 2025.