Latest News | RBI Extends Legal Entity Identifier to Large Borrowers of NBFCs and UCBs

Mumbai, April 21 (PTI) The Reserve Bank on Thursday extended Legal Entity Identifier (LEI) guidelines to large borrowers of NBFCs and Primary (City) Co-operative Banks (UCBs).

After review, it has been decided that the LEI guidelines extend to Primary (City) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs), the RBI said in a notification.

Read also | NIT Durgapur Recruitment 2022: Apply for 106 Non-Teaching Positions at; Check the details here.

It is further advised that non-individual borrowers with aggregate exposure of Rs 5 crore and above to banks and financial institutions (FIs) are required to obtain LEI codes within the given time frame.

According to the schedule, borrowers with an exposure of Rs 25 crore must obtain the LEI by April 30, 2023.

Read also | Launch of the Realme Narzo 50A Prime India scheduled for April 25, 2022.

The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide. It was designed as a key measure to improve the quality and accuracy of financial data systems for better risk management after the global financial crisis.

Borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) will not be penalized with any new exposure and will not be granted renewal/upgrade of any existing exposure, a- he declared.

However, central and state government departments/agencies (not public sector enterprises registered under the Companies Act or incorporated as a corporation under the relevant law) will be exempt from this provision, a- he declared.

(This is an unedited and auto-generated story from syndicated newsfeed, LatestLY staff may not have edited or edited the body of the content)

Comments are closed.