Large Borrowers Must Get Unique Code from Banks: RBI

In a bid to improve risk management practices in the banking sector, which have proven to be poor in light of the rising bad loans, the central bank RBI has asked large corporate borrowers who have exposure equal to or above Rs. 5 crores to get a unique code from banks.

Obtaining the unique code, which is a 20-digit Legal Entity Identifier (LEI), is mandatory for all large borrowers. A timeline has also been released for the same that’s based on the non-fund exposure value:

• Above Rs. 1,000 crores- By March 31,2018
• Between Rs. 500 crores and Rs. 1,000 crores- By June 30,2018
• Between Rs. 100 crores and Rs. 500 crores- By March 31, 2019
• Between Rs. 50 crores and Rs. 100 crores- By December, 2019

For the borrowers that have exposure between Rs. 5 crores and Rs. 50 crores, the deadline will be announced in due course, RBI said.