Categories: Loans and advances

Mandatory LEI codes required for non-individual borrowers to enjoy credit facility of 5 crore and above

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 exposureLEI to be obtained on or before
Above Rs 25 croreApril 30, 2023
Above Rs 10 Crore up to Rs 25 croreApril 30, 2024
Rs 5 crore and above, up to Rs 10 CroreApril 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.

Related Post:

Surendra Naik

Share
Published by
Surendra Naik

Recent Posts

Features of a Computerized Accounting System

Accounting is a multifaceted discipline. It caters to the diverse informational needs of stakeholders within…

9 hours ago

What is the meaning of computerized accounting?

As the name says ‘computerised accounting’ is the use of computers, software, and hardware to…

1 day ago

Supreme Court overrules capping of Credit card charges

The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission…

2 days ago

Preparation and Presentation of Financial Statements of Banks

The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis…

3 days ago

Accounting Treatment of Specific Items under accounting policies of banks

The term "accounting treatment" represents the prescribed manner or method in which an accountant records…

3 days ago

Explained: Disclosures Prescribed by RBI under Basel-III

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the…

4 days ago