HDFC bank in partnership with National E-Governance Services Limited (NeSL) has issued India's first Electronic bank guarantee on September 4th,2022.
What is Special about it?
It is the become the first bank in the country to implement e-BG initiative.
Further Details from Press Statements:
The Bank's Group head- Operations stated that the e-BG initiative will increase the ease of doing business for MSMEs, who are the major applicants for bank guarantee. He also informed that the bank is intending to migrate to e-BG platform completely, in order to expedite the issuance of BG for its customers.
MD of NeSL said that, e-BGs eliminates the physical documentations associated with issuance of BGs and it is made available in digital form to the beneficiary.
Process flow:
e-BGs will be issued on NeSL portal through API based digital workflow.
Steps involved in issuance of e-BG include:
- Text generation of BG by the customer
- e-Stamping by NeSL
- Signing and hosting of final e-BG on NeSL portal.
- On completion of process, e-BG gets issued and is available for viewing, with minutes of issuance.
Advantages of e-BG:
- saving in the turnaround time for issuance & confirmation of BG
- offers enhanced security.
- Central repository for BGs issued
- Saves cost involved in creation & maintenance of physical BGs