HDFC Bank issues India’s first Electronic Bank Guarantee

HDFC Bank issues India’s first Electronic Bank Guarantee: HDFC Bank issued the nation’s first electronic bank guarantee (e-BG) in collaboration with National E-Governance Services Limited (NeSL). It has become the first bank in the country to take this step. Electronic Bank Guarantee (e-BG) was developed in collaboration with NeSL, the CVC-CBI committee, and IBA. A digital approach based on APIs will be used to issue e-BG on the NeSL portal. For the benefit of the public, HDFC Bank will totally switch over to the e-BG platform.

What are the benefits of an Electronic Bank Guarantee?

• It offers more security, lower costs due to the elimination of shipping fees, and quicker delivery of the guarantee.
• It takes three to five days to physically pick up paper bank guarantees from the bank, send them by courier to the beneficiary, have them stamped, and then re-verify them. Electronic Bank Guarantee will make the process faster.
• Optimize the procedure and remove the chance of fraud and manipulation.
• The recipient and applicant will be able to examine a bank guarantee right away on the NeSL portal because of the electronic bank guarantee.
• The physical paperwork required in a bank guarantee is eliminated by an electronic bank guarantee or e-BG, and the beneficiary can access the e-BG in digital form.
• This will increase the ease of doing business for MSMEs who are major applicants for bank guarantees.

HDFC Bank

• HDFC Bank is one of the top private banks in India.
• It was one of the first to get approval from the Reserve Bank of India (RBI) to start a private sector bank in 1994.
• Headquarters: Mumbai
• Tagline: We Understand Your World
• Chairman: Atanu Chakraborty
• In order to operate and expand the Bank, HDFC Bank has been developing new competencies through the Digital Factory, Enterprise Factory, and Enterprise IT. Building new competencies is a crucial component of the bank’s digital strategy.