Electronic bank guarantee scheme launched by Indian Overseas Bank

Current Affairs

  • The public sector Indian Overseas Bank announced on Wednesday the introduction of an e-BG (Electronic Bank Guarantee) scheme in collaboration with the National e-Governance Services Ltd.
  • The e-BG is an instrument issued by the city-headquartered bank in which the bank undertakes to guarantee a specific amount against the non-fulfillment of some action/performance of the applicant.
  • The salient features of e-BG are to be completely paperless mode with digital stamping and digital signature.
  • Real-time issuance of eBG will make it available to the beneficiary immediately thereby saving time, which in turn will fast-track all the business purposes for which it is issued.
  • Indian Overseas Bank is one of the pioneers to introduce Bank Guarantees through digital mode. As of now, only a few banks have the facility to issue e-BG.
  • It is a step further in pursuing the path to achieve the Vision ‘Mission Statement-2021-2026’ to provide Best Banking Solutions through Digital Experience for Customer Delight.

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