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

• 15 Sep 2022

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).

• e-BG has been developed in consultation with NeSL, CVC-CBI committee and IBA to simplify the process and eliminate the possibility of fraud and manipulation.
• e-BG will be issued on the NeSL portal through an API-based digital workflow.

Earlier Method (Paper Based)

• Paper-based bank guarantees takes 3-5 days to complete the process of physical pick up from the bank, courier to the beneficiary, stamp it and re-verify it. Besides there was no central repository for bank guarantees until now.

New Method (e-BG)

• An Electronic Bank Guarantee or e-BG eliminates the physical documentation usually associated with a bank guarantee, and the e-BG becomes available in a digital form to the beneficiary.
• Bringing in efficiency of time, eBG offers enhanced security. Physical stamping has been eliminated and replaced with eStamping and with eBG, the applicant and beneficiary can instantly view a bank guarantee on the NeSL portal.