Categories: Banking

Bank of Baroda launches Electronic Bank Guarantee on its Digital Platform

Bank of Baroda launches Electronic Bank Guarantee

Bank of Baroda, a public sector bank, has announced its partnership with National E-Governance Services Limited (NeSL), a government-backed information utility appointed by the Insolvency and Bankruptcy Board of India, to launch the Electronic Bank Guarantee (BG) system.

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The system enables the issuance of inland bank guarantees securely and conveniently through the bank’s digital platform BarodaINSTA.

Bank of Baroda launches Electronic Bank Guarantee: Key Points

This system is entirely digital, which reduces turnaround time and ensures a safer and more accessible medium.
Upon issuance, the beneficiary can view the final digital BG immediately on the NeSL portal, eliminating the need for a separate BG issuing Bank authentication.

Electronic Bank Guarantee by Bank of Baroda: Aim

The aim of this launch is to significantly reduce the turnaround time for issuing electronic bank guarantees compared to the conventional paper-based process.
The Bank expects the new system to bring down the average turnaround time for a conventional BG from 2-3 days to just a few minutes.

Why is launching an Electronic bank guarantee important?

The reason for launching electronic bank guarantees is to provide a faster turnaround time compared to the traditional paper-based process of issuing inland bank guarantees.
The Bank of Baroda claims that e-BGs will significantly reduce the average turnaround time from 2-3 days to a few minutes. E-BGs are stored in a central repository, making it easy to authenticate and verify documents for all stakeholders.
e-BGs are a transformative reform that simplifies banking, enhances security and accessibility for customers.
Contractors, SMEs, and large corporations frequently apply for bank guarantees, and the move to e-BGs will benefit all, providing a quick, seamless, transparent, and entirely secure process.
In addition to the Bank of Baroda, other banks like HDFC, SBI, Yes Bank, and Federal Bank offer e-BG facilities.