{"id":2141,"date":"2021-02-10T06:35:34","date_gmt":"2021-02-10T06:35:34","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2141"},"modified":"2021-02-10T06:44:12","modified_gmt":"2021-02-10T06:44:12","slug":"legal-entity-identifier","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/","title":{"rendered":"Legal Entity Identifier: Implementation of LEI by RBI for Large Value Transactions"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Reserve Bank of India, by way of\nNotification No RBI\/2020 \u2013 21\/ 82, issued on 05.01.2021. The said notification\ndeals with the implementation of the Legal Entity Identifier, which will come\ninto effect from 01.04.2021.<\/p>\n\n\n\n<p>Further, it shall be taken into due consideration\nthat the scheme of Legal Entity Identifier will be applicable to only those\nindustries who are dealing in the transactions worth Rs 50 crore and above, and\nthe same has been undertaken by way of Centralised Payment Systems.<\/p>\n\n\n\n<p>In this blog, we will discuss in detail the concept\nof Legal Entity Identifier, together with the process to obtain the LEI Code.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a9e33894fa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a9e33894fa\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Concept_of_Legal_Entity_Identifier\" title=\"Concept of Legal Entity Identifier\">Concept of Legal Entity Identifier<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Purpose_of_Legal_Entity_Identifier\" title=\"Purpose of Legal Entity Identifier\">Purpose of Legal Entity Identifier<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#RBI_Notification_on_Legal_Entity_Identifier\" title=\"RBI Notification on Legal Entity Identifier\">RBI Notification on Legal Entity Identifier<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Process_to_Obtain_Legal_Entity_Identifier\" title=\"Process to Obtain Legal Entity Identifier\">Process to Obtain Legal Entity Identifier<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Login_to_Official_Portal\" title=\"Login to Official Portal\">Login to Official Portal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Appointment_of_Authorised_Person\" title=\"Appointment of Authorised Person\">Appointment of Authorised Person<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Upload_Necessary_Documents\" title=\"Upload Necessary Documents\">Upload Necessary Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Verification_by_LEI_India\" title=\"Verification by LEI India\">Verification by LEI India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Issuance_of_LEI_Code\" title=\"Issuance of LEI Code\">Issuance of LEI Code<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Concept_of_Local_Operating_Unit\" title=\"Concept of Local Operating Unit\">Concept of Local Operating Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/#Official_RBI_Notification\" title=\"Official RBI Notification\">Official RBI Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Legal_Entity_Identifier\"><\/span>Concept of Legal Entity Identifier<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Legal Entity Identifier (LEI) means a 20\ndigits unique alpha numeric code granted by RBI. It is based on the ISO 17442\nstandards established by the International Organisation for Standardisation. <\/p>\n\n\n\n<p>Further, the main function of LEI is to connect the key information of the legal entities involved in the financial transaction, as the same facilitate clarity and unique identification.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/limitations-of-trademark-law\/\">All You Need to know about Limitations of Trademark Law<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_of_Legal_Entity_Identifier\"><\/span>Purpose of Legal Entity Identifier<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main reason behind the implementation of the\nconcept of Legal Entity Identifier was to cut down the cases of the financial\ncrisis and improve transparency and accountability in the Financial Data\nSystems. <\/p>\n\n\n\n<p>Also, the same aims to improve the quality and\naccuracy of the financial data systems, as the same will facilitate better risk\nmanagement. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBI_Notification_on_Legal_Entity_Identifier\"><\/span>RBI Notification on Legal Entity Identifier<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Based on the notification issued by the Reserve Bank\nof India, it is mandatory for all the entities who are engaged in fund\ntransfers of Rs 50 crore or above needs to obtain LEI on a mandatory basis.\nFurther, the LEI number issued to the beneficiaries and remitters need to be\nincluded on the dealing and payments of Rs 50 crore or above, which are made\nthrough Real Time Gross Settlement (RTGS) and National Electronic Funds\nTransfer (NEFT).<\/p>\n\n\n\n<p>Further, the apex bank has introduced the said\nscheme in a phased manner for the participants dealing in the Over the Counter\nDerivative and Non-derivative Markets, together with large corporate borrowers.<\/p>\n\n\n\n<p>Further, as per the RBI guidelines, all the\nnon-individual entities that transfer funds of Rs 50 crores or above need to\nacquire LEI numbers from the Legal Entity Identifier India Limited. Also, it\nshall be the duty of the banks, who are facilitating such large value\ntransactions, to maintain records for their customers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_to_Obtain_Legal_Entity_Identifier\"><\/span>Process to Obtain Legal Entity Identifier<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The steps involved in obtaining LEI are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Process-to-Obtain-Legal-Entity-Identifier-heading.png\" alt=\"Process to Obtain Legal Entity Identifier\" class=\"wp-image-2153\" width=\"365\" height=\"369\"\/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Login_to_Official_Portal\"><\/span>Login to Official Portal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the first step, the applicant requires to visit\nthe official portal at <a href=\"https:\/\/www.ccilindia-lei.co.in\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.ccilindia-lei.co.in<\/a> and click on the\nfourth tab, i.e., Downloads. <\/p>\n\n\n\n<p>Further, the checklist for documents and format\nnecessary for filing are available based on the legal structure of the entity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appointment_of_Authorised_Person\"><\/span>Appointment of Authorised Person<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the next step, a person will be appointed as \u201cAuthorised\nPerson\u201d, who will carry out the process of obtaining the LEI Code. The modes of\nappointing such an authorised person are as follows:<\/p>\n\n\n\n<ul><li>Passing of Resolution;<\/li><li>Power of Attorney;<\/li><li>Voluntarily;<\/li><\/ul>\n\n\n\n<p>Also, such an\nAuthorised Person will have the opportunity to create an account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Upload_Necessary_Documents\"><\/span>Upload Necessary Documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, the applicant requires to upload all the\nprescribed documents in an e-mail. However, it shall be considerate to take\ninto consideration that the total size of the uploaded documents must not\nincrease 40 MB. If in case, it is not possible for the applicant to upload the\ndocuments, then, in that case, he\/ she can courier the same at the LEI India\nLimited, CCIL Bhawan, 3<sup>rd<\/sup> &nbsp;floor, SK Bhole Road, Dadar, West Mumbai &#8211;\n400028.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Verification_by_LEI_India\"><\/span>Verification by LEI India<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After sending or emailing the documents, the LEI\nIndia will verify the filed application form and will ask for the additional\ndocument, if in case required.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issuance_of_LEI_Code\"><\/span>Issuance of LEI Code<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the application filed, and the documents\nsubmitted are duly verified, then, in that case, the authorities, will issue an\nLEI Code to the applicant. The same will be granted by way of an email sent to\nthe concerned entity on its registered email. Further, this code is provided to\nthe banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Local_Operating_Unit\"><\/span>Concept of Local Operating Unit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Local Operating Unit means a body\ndesignated by RBI for the implementation of LEI and its use in India. The said\nbody needs to obtain accreditation from the Global LEI Foundation. Further, to\nbecome a Local Operating Unit, one needs to apply as well on the above\nmentioned portal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\na nutshell, LEI means a 20 digits unique alpha numeric code granted by RBI. It\nis used to connect the key information of the legal entities involved in a financial\ntransaction. Further, based on the RBI guidelines, all the non-individual\nentities that transfer funds of Rs 50 crores or above need to acquire LEI\nnumbers from the Legal Entity Identifier India Limited. Also, the same will\nbecome effective from 01.04.2021.<\/p>\n\n\n\n<p>Lastly, in case of any other doubt or perplexity, reach out to <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/\">Swarit Advisors<\/a><\/strong>, our team of experts are available to cater all your doubts and queries effectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_RBI_Notification\"><\/span>Official RBI Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Official-RBI-Notification-for-Legal-Entity-Identifier.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-RBI-Notification-for-Legal-Entity-Identifier<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/de-criminalisation-of-compoundable-offences-under-llp\/\">De-Criminalisation of Compoundable Offences under LLP: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Reserve Bank of India, by way of Notification No RBI\/2020 \u2013 21\/ 82, issued on 05.01.2021. The said notification deals with the implementation of the Legal Entity Identifier, which will come into effect from 01.04.2021. Further, it shall be taken into due consideration that the scheme of Legal Entity Identifier will be applicable [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,56],"tags":[360,359],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2141"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2141"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2141\/revisions"}],"predecessor-version":[{"id":2154,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2141\/revisions\/2154"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2142"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}