HDFC Bank issues India’s first Electronic Bank Guarantee

NL Correspondent
Jammu Tawi: HDFC Bank has become the first bank in the country to issue an Electronic Bank Guarantee (e-BG) in partnership with National
E-Governance Services Limited (NeSL). Paper 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. Paper-based bank guarantees 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. 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. Mr Bhavesh Zaveri, Group Head – Operations, HDFC
Banksaid on this occasion, “Digitisation is an important enabler for our vision, to be recognised as a Bank which offers a distinctive customer
experience. We remain committed to designing products that make digital banking simple, contextual, and highly secure. 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 migrateto eBG platform completely in order to expedite the issuance of BGs for our customers.” Debajyoti Ray Chaudhuri, MD
& CEO of NeSL said, “An Electronic Bank Guarantee or eBG eliminates the physical documentation usually associated with a bank guarantee,
and the eBG becomes available in a digital form to the beneficiary. It was a pleasure to be associated with HDFC Bank in implementing eBG
and we are extremely happy that HDFC Bank became the first bank to issue such an eBG using the NeSL paperless eStamping DDE
platform.”HDFCBank has been building new competencies through Digital Factory, Enterprise Factory and Enterprise IT to both run and build
the Bank. Building new competencies is a key pillar for the bank's digital strategy.