January 05, 2021<\/p>\n\n\n\n
The Chairman \/ Managing Director \/ Chief Executive Officer
of member banks participating in RTGS \/ NEFT<\/p>\n\n\n\n
Madam \/ Dear Sir,<\/p>\n\n\n\n
3. It has now been decided to introduce the LEI system for all payment transactions of value \u20b950 crore and above undertaken by entities (non-individuals) using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).<\/p>\n\n\n\n 4. In preparation for the wider introduction of LEI across all payment transactions, member banks should: 5. Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF), the body tasked to support the implementation and use of LEI. In India, LEI can be obtained from Legal Entity Identifier India Ltd. (LEIL)(https:\/\/www.ccilindia-lei.co.in)<\/strong>, which is also recognised as an issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007.<\/p>\n\n\n\n 6. These directions are issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall be effective from April 1, 2021.<\/p>\n\n\n\n <\/p>\n\n\n\n Annex<\/strong><\/p>\n\n\n\n Bank Customers who must obtain LEI<\/strong> i. All non-individual customers initiating or receiving transactions of \u20b950 crore and above through RTGS and \/ or NEFT<\/p>\n\n\n\n Fields in NEFT and RTGS payment messages to be used for recording Remitter and Beneficiary LEI<\/strong><\/p>\n\n\n\n i. For RTGS customer payment transactions, LEI information shall be provided in \u2018Remittance information\u2019 field.<\/p>\n\n\n\n ii. For NEFT outward debit messages, LEI information shall be provided in \u2018Sender to Receiver Information\u2019 field.<\/p>\n\n\n\n iii. Technical guidelines for populating LEI in identified fields in RTGS and NEFT messages shall be communicated separately.<\/p>\n\n\n\n
Introduction of Legal Entity Identifier for Large Value Transactions in Centralised<\/strong> Payment Systems<\/strong><\/p>\n\n\n\n
i.<\/strong> advise entities who undertake large value transactions (\u20b950 crore and above) to obtain LEI in time, if they do not already have one;
ii.<\/strong> include remitter and beneficiary LEI information in RTGS and NEFT payment messages (details of the identified fields in the messaging structures of RTGS and NEFT for inclusion of LEI information are at Annex);
iii.<\/strong> maintain records of all transactions of \u20b950 crore and above through RTGS and \/ or NEFT. <\/p>\n\n\n\n
Yours faithfully,<\/p>\n\n\n\n
(P Vasudevan)
Chief General Manager<\/p>\n\n\n\n
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