CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has extended the guidelines on Legal Entity Identifier (LEI) to large borrowers of NBFCs and Primary (Urban) Co-operative Banks (UCBs).

Detailed explanation-2: -The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. LEI is a 20-digit unique code to identify parties to financial transactions worldwide.

Detailed explanation-3: -It is further advised that non-individual borrowers enjoying aggregate exposure of ₹5 crore and above from banks 1 and financial institutions (FIs) 2 shall be required to obtain LEI codes as per the timeline given in the Annex.

Detailed explanation-4: -Ans. The Legal Entity Identifier (LEI) is a 20-character alpha-numeric code used to uniquely identify parties to financial transactions worldwide. It has been implemented to improve the quality and accuracy of financial data reporting systems for better risk management.

Detailed explanation-5: -The structure of the global LEI is determined in detail by ISO Standard 17442 and takes into account Financial Stability Board (FSB) stipulations. Q1: This RBI Mandate states that LEI Number is required for all payment transactions of value INR 50 crore and above undertaken.