New Delhi, Dec 10 (IANS): The Reserve Bank of India on Friday made the 'Legal Entity Identifier' mandatory for cross-border transactions for capital or current account transactions worth Rs 50 crore and above.

The LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide to improve the quality and accuracy of financial data systems.

The identifier norm has been introduced in a phased manner for participants in the over the counter (OTC) derivative, non-derivative markets, large corporate borrowers, and large value transactions in centralised payment systems.

Starting October 1, 2022, banks will have to obtain the 'LEI' number from the resident entities (non-individuals) undertaking any capital or current account transactions.

For LEI holders, it would be mandatory to furnish the number in all transactions irrespective of the transaction size.

"Once an entity has obtained an LEI number, it must be reported in all transactions of that entity, irrespective of transaction size," the central bank said in a circular.