RBI on Thursday (21.04.2022) extended the guidelines on Legal Entity Identifier (LEI) to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).
According to RBI’s circular ‘Non-individual borrowers enjoying aggregate exposure of Rs 5 crore and above from banks (excluding RRBs) and financial institutions (FIs), who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) within the timeline given below shall not be sanctioned any new exposure nor shall they be granted renewal/enhancement of any existing exposure. However, departments/Agencies of Central and State Governments (not Public Sector Undertakings registered under Companies Act or established as Corporation under the relevant statute) shall be exempted from this provision, it said.
Timeline for obtaining LEI by borrowers
|Total exposure||LEI to be obtained on or before|
|Above Rs 25 crore||April 30, 2023|
|Above Rs 10 Crore up to Rs 25 crore||April 30, 2024|
|Rs 5 crore and above, up to Rs 10 Crore||April 30, 2025|
“Exposure for this purpose shall include all fund based and non-fund based (credit as well as an investment) exposure of banks/FIs to the borrower. Aggregate sanctioned limit or outstanding balance, whichever is higher, shall be reckoned for the purpose. Lenders may ascertain the position of aggregate exposure based on information available either with them or CRILC database or declaration obtained from the borrower”, RBI said.