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Mumbai, Nov 2 () RBI today said corporate borrowers having exposure of Rs 5 crore and above will have to mandatorily obtain 20-digit Legal Entity Identifier (LEI) from banks, a move that is aimed at improving risk management.
Coming out with timeline for implementing the LEI, the RBI said borrowers with fund and non-fund exposure of Rs 1,000 crore and above will have to get the unique code by March 31, 2018.
Those having exposure between Rs 500 crore and Rs 1,000
crore have to obtain the LEI code by June 30 and those having
between Rs 100 crore and Rs 500 crore by March 31, 2019.
Borrowers with bank credit between Rs 50 crore and Rs 100
crore have been given time to comply with LEI provision by
December 2019.
“…it has been decided that the banks shall advise their
existing large corporate borrowers having total exposures of
Rs 50 crore and above to obtain LEI,” the RBI said in a
notification.
A separate roadmap for borrowers having exposure
between Rs 5 crore and up to Rs 50 crore would be issued in
due course, it added.
Borrowers who do not obtain LEI as “per the schedule are
not to be granted renewal/enhancement of credit facilities”,
the central bank said in a notification.
LEI is a 20-digit unique code to identify parties to
financial transactions worldwide. The 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.
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