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YES Bank issues its first Electronic Bank Guarantee

March 27, 2023

YES Bank issues its first Electronic Bank Guarantee
Commercial banking company, Yes Bank, on Thursday said it has issued its first Electronic Bank Guarantee (e-BG), in pact with National E-Governance Services Limited (NeSL), an Information Utility (IU) appointed by the Insolvency and Bankruptcy Board of India (IBBI).

An Electronic Bank Guarantee (e-BG) mainly eliminates the physical documentation usually associated with issuance of BG. It reduces the turn-around time of the BG issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes. While, a bank guarantee is a kind of assurance from a lending organisation. The bank guarantee signifies that the lending institution ensures that the liabilities of a debtor are going to be met.

The API integration with the Digital Document Execution (DDE) platform of NeSL has enabled complete digitisation of the existing paper-based process for issuance and maintenance of Bank Guarantee (BG), according to a statement by the company.

“The integration with NeSL is in line with our strong track record of collaborating with public digital utilities like Central Bank Digital Currencies (CBDC), Open Network for Digital Commerce (ONDC), Account Aggregator (AA), and Government e-Marketplaces (GEM), to accelerate digitization and enabling ease of doing business for our Micro, Small and Medium Enterprises (MSME) and corporate customers. The Bank has embarked on this transformational journey to comprehensively DIGITIZE the entire BG management process and deliver a superior customer experience, while reducing costs and facilitating secure transactions,” said Ajay Rajan, Country Head – Digital and Transaction Banking Group, Yes Bank.

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