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

Current Affairs

  • 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).
  • aper based, time-consuming process has been eliminated with the new electronic bank guarantees that can be processed, stamped, verified and delivered instantly with enhanced security. This is a transformational change, and the Bank will migrate to eBG to benefit all its customers.
  • e-BG boosts efficiency and security, while enabling the beneficiary to instantly view a bank guarantee on the NeSL portal.
  • The e-BG would be issued on the NeSL portal through an API-based digital workflow.
  • Digitisation of the overall bank guarantee process ensures ease of doing business for MSMEs, who are the major applicants for bank guarantees.
  • The e-BG was developed in consultation with the NeSL, CVC-CBI committee and Indian Banks’ Association (IBA).

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