Answer briefly the following questions : What is the concept of 'Legal Entity Identifier' for Large Value Transactions in Centralised Payment Systems?
CS Professional · Banking - Law & Practice · PYQS · June 2022
Answer briefly the following questions : What is the concept of 'Legal Entity Identifier' for Large Value Transactions in Centralised Payment Systems?
Answer & Explanation:
Legal Entity Identifier (LEI): 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. 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).
Topics: Payment Systems
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