The Reserve Bank of India vide Notification No.DOR.CRE.REC.28/21.04.048/2022-23 issued that the Guidelines on Legal Entity Identifier (LEI) stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies.
It is further advised that non-individual borrowers enjoying aggregate exposures of INR 5 Crore and above from banks and financial institutions (FIs) shall be required to obtain LEI codes as per the timelines given in the annexure of the notification.
Borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) 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.
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For further information, please contact:
Vineet Aneja, Partner, Clasis Law
vineet.aneja@clasislaw.com
