The Reserve Bank of India ("RBI") has issued notification dated November 02, 2017, pursuant to which banks are required to advise their existing large corporate borrowers having total exposures of INR 50 crore and above to obtain Legal Entity Identifier ("LEI") as per specified schedule. The notification clearly states that the borrowers who do not obtain LEI as per the schedule shall not be granted renewal / enhancement of credit facilities. LEI is a 20-digit unique code which can be obtained from Legal Entity Identifier India Ltd, a subsidiary of the Clearing Corporation of India Limited (CCIL), which has been recognised by the Reserve Bank as issuer of LEI under the Payment and Settlement Systems Act, 2007 and is accredited by the Global Legal Entity Identifier Foundation as the Local Operating Unit in India for issuance and management of LEI.
This update is authored by Clasis Law, Clyde & Co's associated firm in India
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