Gandhinagar: Bank of Baroda (Bank), one of India’s leading public sector banks, has launched the Electronic Bank Guarantee (e-BG) on its BarodaINSTA platform, in partnership with National E-Governance Services Limited (NeSL).
NeSL is India’s first and only Information Utility and is regulated by the Insolvency and Bankruptcy Board of India.
With this launch, Bank of Baroda joins a select group of banks to issue e-BG — a start-to-end digital process across the complete lifecycle of a BG including issuance, amendment and closure resulting in substantial reduction in the turnaround time in issuing a BG, while at the same time bringing in greater security and accessibility.
The conventional paper-based process of issuing inland Bank Guarantees normally takes a few days to execute from BG issuance to receipt by the beneficiary. Further, in the absence of a central repository, it is difficult to verify the BG status and there is also scope for misuse.
In an e-BG, physical stamping is replaced by e-stamping by NeSL, preventing fraud. The e-BGs are stored in a central repository resulting in complete transparency and accessibility for all stakeholders, as well as ease of authentication and verification.
Also, as against the average 2-3 days TAT in case of a conventional BG, an Electronic Bank Guarantee gets processed and delivered in a matter of minutes.
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