RBI introduced LEI (legal entity identifier) for large value transaction in RTGS/NEFT for all payment transaction of 50 crore and above.
It will be implemented from 1st April, 2021.
The directions issued by RBI under section 10(2) of payment and settlement act , 2007.
It's a unique 20 digit global reference number to identify legal entities participating in financial transactions. The identifier is alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). the first four characters identifying the local operating unit (LOU) that issued the LEI. Characters 5-18 are the unique alphanumeric string assigned to the organisation by the LOU. The final two characters are checksum digits.
Eg. 5493 00 0IBP32UQZ0KL 24
It will make the identification of an entity easy in global database.
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