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14/09/22 13:45 PM IST

HDFC Bank issues India’s first Electronic Bank Guarantee (e-BG)

In News 
  • HDFC Bank, India’s largest private sector bank, became the first bank in the country to issue an Electronic Bank Guarantee (e-BG) in partnership with National E-Governance Services Limited (NeSL).
About e-BG 
  • 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).
NeSL 
  • 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.
Source- Live Mint 

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