What is beneficiary LEI?
The Legal Entity Identifier (LEI) is a 20-character alpha-numeric code used to uniquely identify parties to financial transactions on a global scale. It has been implemented to improve the quality and accuracy of financial data reporting systems for better risk management. An LEI number is mandatory for legal entities trading in the financial industry. A beneficiary LEI is, therefore, an LEI code of the legal entity that receives money or other benefits from a benefactor.
What is beneficiary LEI?
RBI has introduced LEI in a phased manner for participants in the over-the-counter (OTC) derivative and non-derivative markets. RBI introduced LEI first through a circular issued in June 2017 for participants in the OTC derivatives market. That was followed by the RBI extension of LEIs for large corporate borrowers. In June 2020, India’s Insurance Regulatory and Development Authority issued a circular for insurers to obtain LEI.
As per the RBI circular, the introduction of LEI applies to all payment transactions of value Rs.50 crore or more by entities using Reserve Bank-run centralized payment systems, i.e., National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS). This circular applies to entities that are non-individuals.
The member banks must include remitter and beneficiary LEI information in NEFT and RTGS payment messages. They should maintain records of all Rs.50 crore or more transactions through NEFT or RTGS.
When you see the statement “Please enter a valid 20-digit alphanumeric beneficiary LEI,” you must enter the LEI of your counterparty or the LEI of the legal entity that will receive money or other benefits from the transaction.
How do you find beneficiary LEI?
Any company’s LEI data will be publicly available, completely free of charge, and can be accessed through the LEI database. This will provide a more transparent global marketplace and offer businesses a one-stop approach to identifying legal entities, potentially simplifying business transactions.
You can find the beneficiary of the transaction LEI through an LEI number search using the company’s name. The search tool will automatically display all the LEI information accessible through the database. You can also filter the results of a Legal Entity Identifier search by country.
LEI Register — The leading LEI service provider
LEI Register is an official Registration Agent – we have been helping legal entities apply for new LEI codes or transfer and renew existing LEI codes since early 2018. We have successfully pursued our goal of making the LEI registration process simple, automated, fast, and affordable. At LEI Register, we keep our profit margins low and believe in building long-term business relationships.
LEI Register has built a loyal customer base in India and worldwide by offering the lowest prices while keeping customer support active seven days a week.
We process your data registration data with our GLEIF-accredited partner, LOU Ubisecure Oy (RapidLEI).
