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Received email from Bank for LEI registration

Has your company received an email from the Bank asking for LEI registration?... and you are 'Clear as Mud'- Clear as mud means extremely confused and hard to understand :)


This is the email entities have been receiving:


Dear Sir/Madam, We invite reference to RBI Circular no: (RBI/2020-21/82 DPSS.C0.0D No.901 /06.24.001 /2020-21) dated January 05,2021 in terms of which, Legal Entity Identifier Code (LEI) of applicant / beneficiary is mandatory for all payment transactions of value Rs 50 crore and above undertaken by entities (non- individuals) using Reserve Bank run Centralized Payment System viz Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) effective April 1,2021. 1 . We request you to obtain the LEI code from Legal Entity Identifier India Limited (https://www.ccilindia-lei.co.in) which is recognized by RBI as Local Operating Unit accredited by GLEIF. On obtention of the LEI code, self-attested copy of the LEI Code may please be submitted at Bank counters/Branch for updating Bank records before March 31,2021. 2. In view of the Regulatory requirement, we request you to obtain LEI code well in advance and submit the same to our bank well within the stipulated timelines. Thanking you.

What is an LEI Code?


Allow us to explain this to you in just three points

1. Legal Entity Identifier is a unique 20-digit code allotted by the Reserve Bank of India as an initiative to create a global reference data system that uniquely identifies every legal entity, in any jurisdiction, that is party to a financial transaction.

2. Applicability:

Accordingly, if you do one of the below, you will have to register for an LEI:

  • trade in (OTC) markets, derivatives, foreign currency derivatives and credit derivatives in India

  • invest in Government securities markets, money markets and non-derivative forex markets for transactions involving an amount equivalent equivalent to USD 1 million

  • receive an FDI (foreign direct investment) or foreign conversion transaction of USD 1 Million or more in a single tranche

  • make payment of transactions through RTGS/ NEFT of value ₹50 crore or more in a single tranche or aggregate during the year


3. Fresh Registration

Need to obtain a fresh registration failing which bank shall not honour any kind of banking transactions or allow any sort of derivative and non-derivative trading. This registration once obtained needs to be renewed every year.


How to obtain an LEI Code?


If you want to enjoy continuity of your banking transactions and investments - reach out to us for assistance with the LEI registration.


You can contact us here.

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