Module: General Practice
Q104: With reference to the Legal Entity Identifier (LEI) code requirements for borrowers (as per RBI directions effective in 2026), consider the following statements:
The LEI is a 20-digit unique alphanumeric code used globally to identify parties to financial transactions.
It is mandatory for all non-individual borrowers having a total aggregate exposure of ₹5 Crore and above from banks/FIs to obtain an LEI.
Borrowers who fail to obtain an LEI are barred from receiving any renewal or enhancement of their credit facilities.
Which of the statements given above are correct?
It is mandatory for all non-individual borrowers having a total aggregate exposure of ₹5 Crore and above from banks/FIs to obtain an LEI.
Borrowers who fail to obtain an LEI are barred from receiving any renewal or enhancement of their credit facilities.
Which of the statements given above are correct?
✅ Correct Answer: D
Statement 1 is correct; LEI is a 20-digit global standard code (ISO 17442). Statement 2 is correct; as of 2026, all borrowers with exposure of ₹5 Crore or more must have an LEI.
Statement 3 is correct; banks are prohibited from granting renewals, enhancements, or new limits to non-compliant entities.
Statement 3 is correct; banks are prohibited from granting renewals, enhancements, or new limits to non-compliant entities.