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With reference to the Legal Entity Identifier (LEI), consider the following statements:
1. The Reserve Bank of India recently introduced the Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems.
2. The LEI is a 20-digit number used to identify parties to financial transactions worldwide uniquely.
Which of the statements given above is/are correct?      
  • a)
    1 only        
  • b)
    2 only        
  • c)
    Both 1 and 2        
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
With reference to the Legal Entity Identifier (LEI), consider the foll...
The Reserve Bank of India introduced the Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems.
  • The LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide.
  • It was conceived as a key measure to improve financial data systems' quality and accuracy for better risk management post the Global Financial Crisis.
  • The RBI has now decided to introduce the LEI system for all payment transactions of value Rs.50 crore and above undertaken by entities (non-individuals) using RBI-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
  • The RBI has introduced the LEI in a phased manner for participants over the counter (OTC) derivative and non-derivative markets and large corporate borrowers.
  • The RBI as the preparation for the wider introduction of LEI across all payment transactions, issued directions to the member banks.
  • In India, LEI can be obtained from Legal Entity Identifier India Ltd. (LEIL), which is also recognised as an issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007.
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With reference to the Legal Entity Identifier (LEI), consider the following statements:1. The Reserve Bank of India recently introduced the Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems.2. The LEI is a 20-digit number used to identify parties to financial transactions worldwide uniquely.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the Legal Entity Identifier (LEI), consider the following statements:1. The Reserve Bank of India recently introduced the Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems.2. The LEI is a 20-digit number used to identify parties to financial transactions worldwide uniquely.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the Legal Entity Identifier (LEI), consider the following statements:1. The Reserve Bank of India recently introduced the Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems.2. The LEI is a 20-digit number used to identify parties to financial transactions worldwide uniquely.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Legal Entity Identifier (LEI), consider the following statements:1. The Reserve Bank of India recently introduced the Legal Entity Identifier (LEI) for Large Value Transactions in Centralised Payment Systems.2. The LEI is a 20-digit number used to identify parties to financial transactions worldwide uniquely.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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