e-Bank Guarantee (e-BG)
Bank Guarantee is an instrument issued by the Bank in which the Bank undertakes to guarantee a specific amount against the non-fulfillment of some action/performance of the applicant. The guarantee is issued upon receipt of a request from 'applicant' for some purpose/transaction in favor of a 'Beneficiary'.
National e-Governance Services Limited (NeSL) - is an Information Utility (IU) mandated to serve as a repository of legal evidence for financial credit contracts and it has set up a secured DDE platform which operates 24*7 on a remote basis and facilitate conclusion of documentation through e-Signing and digital e-Stamping, thereby enabling contract completion instantaneously. Recently DFS vide its letter dated 16.09.2022 has advised to evaluate the benefits offered by eBG and adoption of same in the organization. NeSL has developed the platform to facilitate the issuance of eBG. NeSL's DDE platform can be used for issuance, amendments, and various life cycles stages of Bank Guarantee. DDE platform is integrated with IGR/ State departments systems for quick procurement of digital stamp certificate and is having capability to execute the documents electronically/digitally.
Following the path to achieve our vision mission statement 2021-2026 to provide best Banking solutions through digital experience for customer delight the Bank we have introduced and implemented e-Bank Guarantee (e-BG) in our Bank on 10.02.2023. Our Bank is one of the pioneers in launching Bank Guarantee through digital mode.
The Bank is 2nd highest issuer among all PSBs and the 3rd highest issuer among all Banks in India. PAN India 425 Branches have been activated.
eBG has been formulated under the guidance of Ministry of Finance with following objective:
- Dematerialization of the BG.
- Online stamp duty payment and receipt of stamp certificate
- Optimization of financial and human resources on account of adoption of paperless green processes
- Serve as a repository for eBG.
- Beneficiaries and customers should have access to NeSL repository to view and download the digital stamp, digital signed BG copy.
Benefits of eBG
✓ Completely Digital
- Not just electronic stamping, the BG document itself is digital with digital signature
- Eliminates pitfalls of paper-based process
- Flexibility in using any BG documentation template as practiced presently, no need to migrate to standardized template across country
- Not only issuance, any amendment / invocation/closure also supported
✓ Notification to Beneficiary / Customer from NeSL
- eBG downloadable from NeSL by beneficiary
- Banks free to follow regulatory requirements of SFMS msg notification at its end
✓ NeSL as Central eBG Repository
- Ease of verification
- Issuing bank can also store eBG issued
✓ Ease of Stamp duty Enforcement