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LEI Mandatory for RTGS/NEFT Transactions of ₹50 Crore and Above

Current · Source: Reserve Bank of India · RBI/2020-21/82 · issued 05 Jan 2021 · ~1 min read

Quick answerFrom April 1, 2021, all non-individual entities must use a Legal Entity Identifier (LEI) for RTGS and NEFT transactions of ₹50 crore and above. Banks must advise customers to obtain LEI, include LEI in payment messages, and maintain transaction records.

The rule, in the simplest words

From April 1, 2021, companies and other non-individuals (not regular people) must use a special 20-digit code called LEI (Legal Entity Identifier) for any payment of ₹50 crore or more through RTGS or NEFT (two big bank payment systems).
Banks must tell their business customers to get an LEI from LEIL (Legal Entity Identifier India Ltd.) or another approved issuer before making such big payments.
When sending the payment message, banks must include the LEI of both the sender and the receiver in a specific field (like 'Remittance information' for RTGS or 'Sender to Receiver Information' for NEFT).
Banks must keep records of all transactions of ₹50 crore and above done through RTGS or NEFT.

How it plays out — a real example

A payments & clearing officer in Indore processes a ₹60 crore RTGS payment for a corporate client. She first checks that the client has an LEI from LEIL, then enters the client's LEI in the 'Remittance information' field of the RTGS message, and also asks the receiving bank for the beneficiary's LEI to include it. After the payment goes through, she saves the transaction record in the bank's system.

What changed

RBI has mandated LEI for all payment transactions of ₹50 crore and above by non-individuals using RTGS and NEFT, effective April 1, 2021. Banks must ensure remitter and beneficiary LEI information is included in payment messages and maintain records of such transactions.

What it means for you

Banks need to update their RTGS and NEFT messaging systems to capture LEI in specified fields (e.g., 'Remittance information' for RTGS, 'Sender to Receiver Information' for NEFT). This enhances transparency and risk management for large-value payments, aligning with global standards. Non-compliance could lead to operational disruptions for high-value transactions.

What you must do

Advise all non-individual customers transacting ₹50 crore or more via RTGS/NEFT to obtain LEI from LEIL or other GLEIF-accredited LOUs.
Update RTGS and NEFT message formats to include remitter and beneficiary LEI in the specified fields.
Maintain records of all transactions of ₹50 crore and above through RTGS and/or NEFT.
Communicate technical guidelines for LEI population to relevant teams once issued by RBI.

Who it affects

Member banks participating in RTGS/NEFT, Non-individual customers (corporates, firms, etc.) making or receiving large-value payments, Legal Entity Identifier India Ltd. (LEIL) as the local LEI issuer

❓ Common questions

Regulatory timeline

Stated effective date effective April 1, 2021
Decoded by BankPulse 2026-06-18 08:49 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the threshold for LEI requirement in RTGS/NEFT?

The LEI is mandatory for all payment transactions of ₹50 crore and above undertaken by non-individual entities using RTGS or NEFT.

Where should LEI be included in RTGS and NEFT messages?

For RTGS, LEI goes in the 'Remittance information' field. For NEFT outward debit messages, it goes in the 'Sender to Receiver Information' field.

From when is this mandate effective?

The directions are effective from April 1, 2021.

📜 Read the original circular — full text as issued by RBI

RBI/2020-21/82
 DPSS.CO.OD No.901/06.24.001/2020-21
 January 05, 2021
 The Chairman / Managing Director / Chief Executive Officer
of member banks participating in RTGS / NEFT
 Madam / Dear Sir,
 Introduction of Legal Entity Identifier for Large Value Transactions in Centralised Payment Systems
 The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide. It was conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.
 2. LEI has been introduced by the Reserve Bank in a phased manner for participants in the over the counter (OTC) derivative and non-derivative markets as also for large corporate borrowers. 
 3. It has now been decided to introduce the LEI system for all payment transactions of value ₹50 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). 
 4. In preparation for the wider introduction of LEI across all payment transactions, member banks should:
 advise entities who undertake large value transactions (₹50 crore and above) to obtain LEI in time, if they do not already have one;
 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 ); 
 maintain records of all transactions of ₹50 crore and above through RTGS and / or NEFT. 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 ), which is also recognised as an issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007. 
 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.
 Yours faithfully,
 (P Vasudevan)
Chief General Manager
 Annex
 Bank Customers who must obtain LEI
 All non-individual customers initiating or receiving transactions of ₹50 crore and above through RTGS and / or NEFT. Fields in NEFT and RTGS payment messages to be used for recording Remitter and Beneficiary LEI
 For RTGS customer payment transactions, LEI information shall be provided in ‘Remittance information’ field.
 For NEFT outward debit messages, LEI information shall be provided in ‘Sender to Receiver Information’ field.
 Technical guidelines for populating LEI in identified fields in RTGS and NEFT messages shall be communicated separately.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/82 · issued 05 Jan 2021. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

⚙️ Operations

Maintain records of all transactions of ₹50 crore and above through RTGS and/or NEFT.

📜 Compliance

Advise all non-individual customers transacting ₹50 crore or more via RTGS/NEFT to obtain LEI from LEIL or other GLEIF-accredited LOUs.
Update RTGS and NEFT message formats to include remitter and beneficiary LEI in the specified fields.
Communicate technical guidelines for LEI population to relevant teams once issued by RBI.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Member banks participating in RTGS/NEFT, Non-individual customers (corporates, firms, etc.) making or receiving large-value payments, Legal Entity Identifier India Ltd. (LEIL) as the local LEI issuer), your first concrete step on “LEI Mandatory for RTGS/NEFT Transactions of ₹50 Crore and Above” is: “Advise all non-individual customers transacting ₹50 crore or more via RTGS/NEFT to obtain LEI from LEIL or other GLEIF-accredited LOUs.” (RBI issued this 05 Jan 2021).

Circular: RBI/2020-21/82 -- LEI Mandatory for RTGS/NEFT Transactions of ₹50 Crore and Above
Issued: 05 Jan 2021
Action required: Advise all non-individual customers transacting ₹50 crore or more via RTGS/NEFT to obtain LEI from LEIL or other GLEIF-accredited LOUs.
Action required: Update RTGS and NEFT message formats to include remitter and beneficiary LEI in the specified fields.
Action required: Maintain records of all transactions of ₹50 crore and above through RTGS and/or NEFT.
Action required: Communicate technical guidelines for LEI population to relevant teams once issued by RBI.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12010&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.