State Bank of India (SBI) has launched e-Bank Guarantee (e-BG) facility in association with National e-Governance Services Limited (NeSL).
India’s largest lender said this facility will bring about a revolutionary change in the banking ecosystem, where bank guarantee is frequently used in large volumes.
The bank, in a statement, said it has taken this initiative to improve transparency and reduce turnaround time from days to minutes.
NeSL’s Digital Document Execution (DDE) platform, which provides e-Stamp and e-Sign functions, will facilitate the e-Bank Guarantee process. Beneficiaries will instantly receive an e-Bank Guarantee on NeSL’s platform without further verification.
Currently, the bank issues these guarantees with physical stamping and wet signatures. The introduction of e-BG will replace this function with e-stamping and e-signature.
Dinesh Kumar Khara, Chairman, SBI, said, “Electronic Bank Guarantee (e-BG)…will reduce time in the Bank Guarantee life cycle. The initiative is in tandem with SBI’s commitment to promoting sustainable and user-friendly banking services.”
Debajyoti Ray Chaudhuri, MD & CEO of NeSL said, “This collaboration is part of a larger initiative of SBI to digitize the last mile in the credit process using the Digital Document Execution (DDE) platform.
“…e-BG envisages that all the life cycle events in the BG, like issuance, amendment, invocation, etc. are fully digital, contactless, and paperless, which I believe is the way forward for all products in the banking industry.”