HDFC Bank issues India’s First Electronic Bank Guarantee
HDFC Bank became the first bank in the country to issue an Electronic Bank Guarantee (e-BG). This has been done in partnership with National E-Governance Services Limited (NeSL). The issuance of India’s first Electronic Bank Guarantee is a transformational change, and the Bank will migrate to eBG to benefit all its customers.
Benefits of Electronic Bank Guarantee
- It will simplify the process of Bank Guarantee and eliminate the possibility of fraud and manipulation.
- This will eliminate paper based, time-consuming process with the new electronic bank guarantees that can be processed, stamped, verified and delivered instantly with enhanced security.
- Electronic Bank Guarantee will enable the applicant and beneficiary to instantly view a bank guarantee on the NeSL portal.
- Paper-based bank guarantees is time consuming process. It usually 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.
- Beneficial for MSMEs: Digitisation of issuance of BG will increase the ease of doing business for MSMEs who are major applicants for bank guarantees.
- Besides there was no central repository for bank guarantees until now. 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.
About HDFC Bank
HDFC Bank Limited is an Indian banking and financial services company. It was founded in August 1994. It is headquartered in Mumbai. It is India’s largest private sector bank by assets. It is the third largest company by market capitalisation of on the Indian stock exchanges. It is also among the largest employer company in India.
Chairman: Atanu Chakraborty
CEO: Sashidhar Jagdishan
India’s First Electronic Bank Guarantee – FAQs
Q. Which bank has issued India’s first Electronic Bank Guarantee?
Ans. HDFC Bank has issued India’s first Electronic Bank Guarantee.
Q. Who is the chairman of HDFC Bank?
Ans. Atanu Chakraborty is the chairman of HDFC Bank.
Q. Where is the Headquarters of HDFC Bank?
Ans. It is headquartered in Mumbai.