An LEI in banking is a unique 20-character alphanumeric code that identifies the legal entity behind a loan, payment or market transaction. The full form of LEI in banking is Legal Entity Identifier, and GLEIF describes the code as a way for anyone to look up reliable reference data for one legal entity. Indian banks ask for it when an RBI requirement covers the borrowing, payment or market activity. If your entity needs one and does not already have a code, you can apply through LEI registration in India.
How Banks Use an LEI
In banking, an LEI identifies the organisation, while an account number identifies its account and an IFSC code identifies the bank branch. The LEI number connects that organisation to its public reference data. RBI introduced it to identify the parties to financial transactions uniquely and to improve the accuracy of financial data reporting, according to its FAQs on large-value payments.
Banks use the code for:
- Entity matching: tying a loan, payment or trade to the correct legal entity, including when two companies have similar names.
- Reference data: checking the legal name, registered address and registration status held on the entity’s public record.
- Reporting: using a consistent identifier in credit reporting and in NEFT and RTGS payment messages. RBI’s 2017 borrower circular introduced LEI capture in the Central Repository of Information on Large Credits.
The code does not establish creditworthiness or replace the bank’s KYC checks. It supplies entity-identification data that the bank can use alongside those checks.
When Indian Banks Require an LEI
It depends on the entity, the activity and the RBI framework that covers it. A bank’s request usually traces back to one of four situations.
| Banking situation | Who is covered | What is measured | Main condition |
| Borrowing | Non-individual borrowers | Aggregate credit and investment exposure across covered lenders | ₹5 crore and above |
| Domestic NEFT and RTGS payments | Non-individual senders and receivers | A single payment | ₹50 crore and above |
| Cross-border transactions under FEMA | Resident non-individual entities using AD Category-I banks | A single capital or current account transaction | ₹50 crore and above |
| Covered OTC financial-market transactions | Resident and non-resident participants other than individuals | The market, instrument and transaction type | Market-specific rules |
Borrowing exposure includes fund-based and non-fund-based credit and investment exposure across covered banks and financial institutions. Use the higher of the aggregate sanctioned limit or outstanding balance. RBI’s staggered deadlines ran from 30 April 2023 to 30 April 2025, so the ₹5 crore band is now fully in force under its borrower circular.
The FEMA row works differently from the others. Under RBI’s circular on cross-border transactions, AD Category-I banks obtain the LEI from resident non-individual entities undertaking capital or current account transactions of ₹50 crore and above per transaction. Once an entity has obtained an LEI, it must be reported in all of that entity’s transactions under this FEMA framework, irrespective of transaction size. For non-resident counterparties, banks may process a transaction when no LEI is available.
RBI’s Unique Identifiers in Financial Markets Directions, 2026 cover specified OTC transactions in government securities, money-market instruments, foreign exchange and derivatives. For client non-derivative foreign-exchange transactions, the threshold is USD 1 million or its equivalent. Participants in covered transactions must hold a current LEI that has not lapsed.
Exemptions differ by framework:
- NEFT and RTGS: the requirement does not apply where both parties are individuals. Central and State Governments and their departments or ministries are also exempt. Government undertakings and corporations remain covered.
- Borrowing: Central and State Government departments and agencies are exempt, but the specified public sector undertakings and statutory corporations are not.
A bank account or incorporation alone does not mean every business needs an LEI. For more detail, see LEI applicability in India. If your entity’s status or borrowing arrangements are unclear, ask the bank which requirement applies.
What to Check When Your Bank Requests an LEI
An LEI code in banking has to belong to the exact entity named in the request, so run these checks before you send a code or start an application.
- Identify the entity and the activity. Name the legal entity that borrows, sends or receives the money, or trades. A subsidiary that is a separate legal entity generally needs its own LEI, although RBI allows specific exceptions for certain non-resident arrangements.
- Confirm the reason with the bank. Ask which requirement it is applying: borrowing exposure, a large payment, a FEMA transaction or a market activity. The answer decides what the bank needs and by when.
- Search for an existing LEI. A code may already exist from an earlier request. Searching by legal name or 20-character code is the quickest way of checking an LEI number and status before paying for a second record, since a legal entity should hold only one.
- Match the legal name and record. The name, jurisdiction and registered address on the Global LEI Index should match the entity in the loan, payment or form. A related company in the same group may hold a different code.
- Check the registration status and renewal date. ISSUED indicates a current LEI registration. LAPSED means the record has not been renewed by its next renewal date.
- Confirm the bank’s submission requirements. Banks may request the LEI code, renewal date and supporting documents. HDFC Bank’s LEI FAQs, for example, include branch submission instructions. Ask your bank what evidence it accepts from your LEI issuer.
When a bank requests a customer’s LEI for a business payment, supply the code of the relevant sending or receiving entity. For covered customer payments, RBI’s NEFT and RTGS message instructions provide for remitter and beneficiary LEI information where applicable.
Keeping an LEI Record Current
An LEI record needs annual revalidation. If renewal is missed, its registration status becomes LAPSED, but the code remains assigned to the same entity. Restore the record by renewing the existing LEI and correcting any outdated details during the process. A data update alone does not replace renewal.
RBI has asked banks to make sure borrowers renew their codes in line with GLEIF guidelines, and its payment FAQs expect banks to hold valid, verified LEI information. Covered financial-market transactions require a current, non-lapsed LEI. For other banking requests, confirm the applicable status requirement with the bank and complete renewal before it becomes overdue. LEI24 offers one-, three- and five-year plans, and revalidation still takes place each year.
What Happens If a Required LEI Is Missing
Resolve the request early, because the consequence depends on the framework that applies.
- Borrowing: a covered borrower that does not obtain a code from an authorised Local Operating Unit cannot be sanctioned new exposure, or granted renewal or enhancement of existing exposure.
- NEFT and RTGS payments: the remitting bank must ensure LEI information for both sender and beneficiary is captured. A beneficiary bank should not reject an inward payment because the LEI is missing or inappropriate, but after the credit, both banks must keep valid, verified LEI information for payments of ₹50 crore and above.
Obtaining an LEI for Banking Through LEI24
Pick the route that matches what the checks found. LEI24 is a Registration Agent that facilitates LEI registration, renewal, update and transfer services through Nasdaq CSD SE, a GLEIF-accredited Local Operating Unit. The route for obtaining an LEI number in India depends on the search result:
- No existing LEI: register a new LEI for the entity.
- Existing LEI: use the same code if its record is current. Renew a LAPSED record and update any changed entity details.
- Changing providers: transfer the existing LEI if the entity wants to use LEI24 for its LEI services. The LEI keeps the same 20-character code, while the managing Local Operating Unit may change. If the LEI is LAPSED, it must also be renewed during the transfer.
Frequently Asked Questions
Can an Indian Business Use an LEI Issued Outside India?
RBI’s framework points to any GLEIF-accredited Local Operating Unit rather than a single Indian issuer, so accreditation and coverage matter, not where it is based. Acceptance still depends on a current record and on the transaction requirement that applies.