The Reserve Bank of India vide notification dated 21st April 2022, has decided to extend the guidelines on LEI to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs) and has advised the non-individual borrowers enjoying aggregate exposure of ₹5 crore and above, upto ₹10 crore from banks and financial institutions (FIs) to obtain LEI codes by 30th April 2025.
As per the timeline, the borrowers having exposure of ₹25 crore are required to obtain LEI by 30th April, 2023 and exposure above ₹10 crore, up to ₹25 crore shall get their LEI by 30th April 2021.
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.
