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November 2017
 |
RBI (The Total Investment & Insurance Solutions)
In
a move to improve risk management post the global financial crisis, the RBI on
Thursday said it has decided that corporate borrowers having exposure of Rs 50
crore and above will have to mandatorily obtain the 20-digit Legal Entity
Identifier (LEI) from banks.
The Total Investment & Insurance Solutions
"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,"
an RBI notification said.
The Total Investment & Insurance Solutions
The
Reserve Bank also unveiled a schedule for implementing the LEI, saying
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. Borrowers having exposure between Rs
500 crore and Rs 1,000 crore have to get the LEI code by June 30, while those
having between Rs 100 crore and Rs 500 crore by March 31, 2019.
Those
with bank credit between Rs 50 crore and Rs 100 crore have time to obtain the
LEI provision by December 2019.
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A
separate roadmap for borrowers having exposure between Rs 5 crore and up to Rs
50 crore would be issued in due course, the central bank said.
Those
who do not obtain the LEI as "per the schedule are not to be granted
renewal/enhancement of credit facilities", it added.
The
LEI is a 20-digit unique code to identify parties to financial transactions
worldwide and helps improve the quality and accuracy of financial data systems
for better risk management.The Total
Investment & Insurance Solutions
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