HDFC issues Electronic Bank Guarantee for MSMEs

Udaipur, Sept 13 (KNN) Private sector lender HDFC Bank has launched an Electronic Bank Guarantee (e-BG) in association with National E-Governance Services Limited (NeSL) to increase the ease of doing business for MSMEs who are major applicants for bank guarantees.

With the new electronic bank guarantees paper based, time-consuming process has been eliminated.

It can be processed, stamped, verified and delivered instantly with enhanced security.

Physical stamping has been eliminated and replaced with e-Stamping and with e-BG, the applicant and beneficiary can instantly view a bank guarantee on the NeSL portal.

Speaking about the development, Bhavesh Zaveri, Group Head – Operations, HDFC Bank said, “Digitisation of issuance of BG is a transformational step towards increasing the ease of doing business for MSMEs who are major applicants for bank guarantees. HDFC Bank will migrate to e-BG platform completely in order to expedite the issuance of BGs for our customers.”

Emphasising on how e-BG eliminates the physical documentation usually associated with a bank guarantee, Debajyoti Ray Chaudhuri, MD & CEO of NeSL said, “It was a pleasure to be associated with HDFC Bank in implementing e-BG and we are extremely happy that HDFC Bank became the first bank to issue such an e-BG using the NeSL paperless eStamping DDE platform.”

The Electronic Bank Guarantee will be issued on the NeSL portal through an API-based digital workflow.  (KNN Bureau)