All Scheduled Commercial Banks
(Excluding Regional Rural Banks),
All India Financial Institutions (Exim Bank, SIDBI, NHB, NABARD),
Local Area Banks, Small Finance Banks
Introduction of Legal Entity
Identifier for large corporate borrowers
The Legal Entity Identifier
(LEI) code is conceived as a key measure to improve the quality and
accuracy of financial data systems for better risk management post the
Global Financial Crisis. LEI is a 20-digit unique code to identify parties
to financial transactions worldwide.
2. The LEI for the participants
of the OTC derivatives market has since been implemented vide circular RBI/2016-17/314 FMRD.FMID
No.14/11.01.007/2-16-17 dated June 01, 2017 in a phased manner.
3. In the Statement on Developmental and
Regulatory Policies dated October 4, 2017 it was indicated that
LEI system for all borrowers of banks having total fund based and non-fund
based exposure of ? 5 crore and above will be introduced in a phased manner
(extract enclosed). Accordingly, it has been decided that the banks shall
advise their existing large corporate borrowers having total exposures of ?
50 crore and above to obtain LEI as per the schedule given in the Annex. Borrowers who do not
obtain LEI as per the schedule are not to be granted renewal / enhancement
of credit facilities. A separate roadmap for borrowers having exposure
between ? 5 crore and upto ? 50 crore would be issued in due course.
4. Banks should encourage large
borrowers to obtain LEI for their parent entity as well as all subsidiaries
5. Entities can obtain LEI from
any of the Local Operating Units (LOUs) accredited by the Global Legal
Entity Identifier Foundation (GLEIF) – the entity tasked to support the
implementation and use of LEI. In India, LEI code may be obtained from
Legal Entity Identifier India Ltd (LEIIL), a subsidiary of the Clearing
Corporation of India Limited (CCIL), which has been recognised by the
Reserve Bank as issuer of LEI under the Payment and Settlement Systems Act,
2007 and is accredited by the GLEIF as the Local Operating Unit (LOU) in
India for issuance and management of LEI.
6. The rules, procedure and
documentation requirements may be ascertained from LEIIL.
7. After obtaining LEI code,
banks shall also ensure that borrowers renew the codes as per GLEIF
8. These directions are issued
under Section 21 and Section 35(A) of the Banking Regulation Act, 1949.
Chief General Manager-in-Charge
from Statement on Developmental and Regulatory Policies
dated October 4, 2017
5. Legal Entity Identifier (LEI)
- It has been decided to
require banks to make it mandatory for corporate borrowers having aggregate
fund-based and non-fund based exposure of ? 5 crore and above from any bank
to obtain Legal Entity Identifier (LEI) registration and capture the same
in the Central Repository of Information on Large Credits (CRILC). This
will facilitate assessment of aggregate borrowing by corporate groups, and
monitoring of the financial profile of an entity/group. This requirement
will be implemented in a calibrated, but time-bound manner. Necessary
instructions will be issued by end-October 2017.
for implementation of LEI
Exposure to SCBs
be completed by
? 1000 crore and above
Mar 31, 2018
Between ? 500 crore and ? 1000
Jun 30, 2018
Between ? 100 crore and ? 500
Mar 31, 2019
Between ? 50 crore and ? 100
Dec 31, 2019