HDFC – first to issue electronic bank guarantee
The HDFC Bank, the largest private sector bank in India, became the first bank in the country to issue an Electronic Bank Guarantee (e-BG).
- The HDFC bank recently launched the first-ever Electronic Bank Guarantee (e-BG) in collaboration with the National E-Governance Services Limited (NeSL).
- e-BG removes the need for the paper-based time consuming process, which often takes 3 to 5 days for complete due to the need for physical pick up from the bank, delivery of courier to the beneficiary, stamping and reverification.
- e-BG boosts efficiency and security, while enabling the beneficiary to instantly view a bank guarantee on the NeSL portal.
- The e-BG would be issued on the NeSL portal through an API-based digital workflow.
- Digitisation of the overall bank guarantee process ensures ease of doing business for MSMEs, who are the major applicants for bank guarantees.
- The e-BG was developed in consultation with the NeSL, CVC-CBI committee and Indian Banks’ Association (IBA).
The National E-Governance Services Limited (NeSL) is India’s first Information Utility. It is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016. It was set up by leading banks and public institutions and is incorporated as a union government company. It serves as a repository of legal evidence having information about debt or claim submitted by the financial or operational creditor and verified by parties to the debt.
Category: Economy & Banking Current Affairs - 2024