Introduction of Legal Entity Identifier for Cross-border Transactions

Last updated: 11 December 2021

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The Reserve Bank of India is introducing the Legal Entity Identifier (LEI) for cross-border transactions. From October 1, 2022, authorised banks must obtain an LEI from resident entities (non-individuals) undertaking capital or current account transactions of ₹50 crore and above. While LEI is mandatory from this date, banks are encouraged to facilitate voluntary LEI reporting before then. Once obtained, the LEI must be reported for all transactions, regardless of value.

Reserve bank of India RBI/2021-22/137 A.P. (DIR Series) Circular No. 20 December 10, 2021 To All Category-I Authorised Dealer Banks Madam / Sir, Introduction of Legal Entity Identifier for Cross-border Transactions The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide to improve the quality and accuracy of financial data systems. LEI has been introduced by the Reserve Bank in a phased manner for particip

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FAQ :

An LEI is a unique 20-digit code used to identify parties in financial transactions globally, aiming to improve the accuracy of financial data.

From October 1, 2022, AD Category-I banks must obtain an LEI from resident entities (non-individuals) for capital or current account transactions of ₹50 crore and above per transaction under FEMA, 1999.

If LEI information is unavailable for non-resident counterparts or overseas entities, AD Category-I banks may still process the transactions to prevent disruptions.

Yes, once an entity has obtained an LEI number, it must be reported in all transactions undertaken by that entity, irrespective of the transaction size.

Entities in India can obtain an LEI from Legal Entity Identifier India Ltd. (LEIL) (https://www.ccilindia-lei.co.in), which is accredited by the Global Legal Entity Identifier Foundation (GLEIF).

Notification No : RBI/2021-22/137 A.P. (DIR Series) Circular No. 20
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12206&Mode=0

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