The Reserve Bank of India has issued directions regarding Legal Entity Identifier (LEI) for Borrowers. According to which it has decided to extend the guidelines on LEI stand to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).
Further, it has advised that non-individual borrowers enjoying aggregate exposure of Rs 5 crore and above from banks and financial institutions shall be required to obtain LEI codes as per the prescribed below mentioned timeline.
Timeline for obtaining LEI by borrowers
|Total Exposure||LEI to be obtained on or before|
|Above Rs 25 crore||April 30, 2023|
|Above Rs 10 crore, up to Rs 25 crore||April 30, 2024|
|Rs 5 crore and above, up to Rs 10 crore||April 30, 2025|
Lenders are advised to ascertain the position of aggregate exposure based on information available either with them, or CRILC database or declaration obtained from the borrower.
However, 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.