From 1 April 2021, all non-individual bank customers initiating or receiving transactions over 500m rupees via the RTGS or NEFT systems will need an LEI.
The RBI (Reserve Bank of India) has mandated that all entities conducting payment transactions worth at least INR 500 million (USD 6.8 million) via the central bank operated RTGS or NEFT systems must have an LEI (Legal Entity Identifier), effective from 1 April 2021.
The LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide. The RBI has introduced the LEI in India in a phased manner for participants in the OTC derivative and non-derivative markets, as well as for large corporate borrowers.
In preparation for the wider introduction of LEI across all payment transactions, RTGS and NEFT member banks are asked to advise all non-individual customers that undertake large value transactions to obtain an LEI, if they have not already done so.
From 1 April 2021, member banks will have to include the LEI of remitters and beneficiaries in RTGS and NEFT payment messages, as well as maintain records of all RTGS/NEFT transactions worth INR 500 million and above.
Entities can obtain an LEI from Local Operating Units accredited by the GLEIF (Global Legal Entity Identifier Foundation). In India, an LEI can be obtained from Legal Entity Identifier India Ltd (LEIL), an RBI-recognised issuer of LEIs.
The RBI’s notice on the mandate is available here. Technical guidelines will be communicated separately.