Country's largest bank State Bank of India (SBI) has recently launched e-Bank Guarantee (e-BG) service in association with National e-Governance Services Limited (NESL). This will benefit the bank as well as the customers who use the bank guarantee for business etc. Presently banks have to issue bank guarantees largely on physical i.e. paper stamps which require signatures.

State Bank of India claims that the e-Bank Guarantee service will revolutionize the financial industry. Banks will now be able to ease the process of e-Bank Guarantee issuance through NeSL's Digital Document Execution (DDE) technology. This will include e-stamp and e-sign features.

Will issue the e-bank in partnership with National e-Governance Service Limited (NESL). The electronic bank contract will be issued on the portal of National e-Governance Service Limited. Through this, he will give instant and paperless information to the customers. This will significantly reduce the time taken in the bank.

what will be the benefit to the customers

  • Using the NeSL platform, bank clients and others will receive e-Bank Guarantee without additional verification. SBI says that this will help in increasing transparency in the system and reducing the response time from several days to minutes.
  • Apart from this, SBI has announced to increase the loan interest rates for the second time in a month. To control inflation, the Reserve Bank of India is continuously increasing the repo rate. This is affecting the interest rates of home loan, car loan and personal loan.
  • SBI has increased the interest rate on loans for a period of one year. It will now be 8.4 percent instead of 8.3 percent. While the interest rate on the loan for a period of two years has been kept at 8.5 percent and the interest rate on the loan period of 3 years has been kept at 8.6 percent only. However, the bank has kept the MCLR i.e. interest rate at 7.85 percent even on the overnight term loan.
  • NeSL's Digital Document Execution (DDE) platform, which provides e-Stamp and e-Sign functions, will facilitate the e-Bank Guarantee process. Beneficiaries will receive the e-Bank Guarantee instantly on NESL's platform without further verification.
  • Presently, the bank issues these guarantees with physical stamping and wet signatures. The introduction of e-BG will replace this task with e-Stamping and e-Signature.

  Last update :  14 January 2023
  News Category :  Scheme
  Post Category :  January 2023