Digital transformation in finance: Why Indian businesses should embrace the LEI and vLEI now

13 maí 2025

In an increasingly digital and globalised world, trust in business partners, data and identities is a critical success factor. In recent years, the Legal Entity Identifier (LEI) has established itself as an international standard for the unique identification of companies – especially in the financial sector. The next level is now ready with the verified LEI (vLEI): a digital, forgery-proof identity for organisations.

What is the LEI?

The LEI is a 20-digit alphanumeric code uniquely assigned to a legal entity worldwide, such as a company, bank, or government organisation. It was developed in response to the 2008 financial crisis to improve global financial transparency.

In India, the LEI is already mandatory or recommended in numerous areas of application; for example

– for foreign exchange transactions (RBI requirements)

– for transfers over INR 50 million (from 2021)

– in the capital market sector through SEBI regulations

– for participation in the platform for electronic invoicing (Invoice Registration Portal – IRP)

What is the vLEI – and why is it important?

The verified LEI (vLEI) is a fully digital, cryptographically secured LEI that enables companies to identify themselves in digital ecosystems in an automated and trustworthy manner. It is issued by the Global Legal Entity Identifier Foundation (GLEIF) and via Verifiable Credentials – a concept closely related to Self-Sovereign Identity (SSI).

Main features of the vLEI:

– Machine-readable, immediately verifiable identity

– Signed proof of company structure, powers of representation (e.g. managing director)

– Cross-border standardised, interoperable & GLEIF-validated

– Saves time in onboarding, KYC and AML processes

The Indian context: Why is this relevant?

India has emerged as a global pioneer in digital infrastructure in recent years with initiatives such as India Stack, Aadhaar, UPI, eSign and DigiLocker. However, a universal, trustworthy digital corporate identity has been lacking until now.

The vLEI can close this gap. It offers companies a legally binding digital business card that can be used, for example, for

– E-government services: for tax or customs processes, for example

– Banking & Fintech: secure, digital company onboarding

– Electronic invoicing (e-invoicing) with automatic verification of company data

– Blockchain and DLT applications: for example, in the supply chain or for smart contracts

Voices from the industry

‘With the vLEI, we can digitally identify companies just as securely as people with Aadhaar.’ – Alexandre Kech, CEO, GLEIF, in the Regulation Asia podcast

‘For Indian banks, the vLEI can be a decisive factor in digitalising corporate customer processes.’ – Rahul Mehta, Compliance Officer, Public Sector Bank India

Concrete advantages for companies in India

1. faster KYC & AML processes:

Less manual document verification, lower costs

2. global business capability:

Accepted standard in more than 200 countries

3. digital integration capability:

Connection to APIs, blockchain systems, ERP platforms

4. better reputation & trust:

Verifiably verified identity and powers of representation

Act now: Apply for LEI & prepare for vLEI

Indian companies of all sizes—from start-ups and SMEs to multinational corporations—should apply for the LEI at an early stage to prepare for regulatory requirements and the digital future.

The vLEI will initially be released for regulated applications in pilot projects but can be used in any digital transaction in the future.

The LEI and the vLEI, in particular, offer Indian companies a future-proof digital identity that creates trust, ensures compliance, and paves the way for automated, global business processes. Those who invest now will not only secure regulatory advantages but also become digital pioneers.