Last Updated: January 14, 2023, 12:32 IST
State Bank of India (SBI), the largest lender in India, and National e-Governance Services Limited have collaborated to launch the e-Bank Guarantee (e-BG) product (NeSL). This function will be replaced by e-stamping and e-signature with the introduction of e-BG. SBI asserts that this service will result in a fundamental shift in the banking industry, where bank guarantees are regularly and extensively utilised. The bank now uses wet signatures and physical stamping to offer these assurances.
NeSL’s Digital Document Execution (DDE) technology, which includes e-Stamp and e-Sign features, will make the e-Bank Guarantee process simpler. Beneficiaries, who use NeSL’s platform, will receive an e-Bank Guarantee right away and without further verification. SBI claimed in the release that the endeavour was aimed at increasing transparency and cutting response times from days to minutes.
The chairman of SBI, Mr. Dinesh Kumar Khara, stated, “It gives us great pleasure to work with NeSL to support the e-BG service. SBI has always been at the forefront of offering its clients cutting-edge digital technologies that make using banking services simple. A significant step in this process that will shorten the Bank Guarantee life cycle is the electronic bank guarantee (e-BG). The program goes hand in hand with SBI’s dedication to providing user-friendly and sustainable financial services.
“It is truly a happy time for us that the country’s largest bank, SBI, is now live on NeSL’s eBG platform,” said Debajyoti Ray Chaudhuri, MD & CEO of NeSL. This partnership is a part of SBI’s bigger effort to use the Digital Document Execution (DDE) platform to digitise the last stage of the credit application process. We appreciate the team at SBI’s diligent efforts as they collaborated with us.
NeSL’s eBG improves the customer experience by eliminating all the pain points in the current physical procedure of issuing BGs. All BG life cycle events, such as issuance, amendment, invocation, etc., are expected to be totally digital, contactless, and paperless under eBG.
State Bank of India is the largest commercial bank in terms of assets, deposits, branches, clients, and personnel. The bank now has a portfolio of house loans worth more than Rs. 6 lakh crore. As of September 30, 2022, the bank has advances totaling more than Rs 30 lakh crore and deposits of over Rs. 41.90 lakh crore, with a CASA ratio of 44.63%. SBI has a market share of 32.9% for home loans and 19.2% for vehicle loans, respectively.
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