HSBC India, in collaboration with the National E-Governance Services Ltd (NeSL), has introduced electronic bank guarantee services, a groundbreaking initiative that aims to streamline trade finance processes. This digital solution is designed to replace the traditional and time-consuming paper-based bank guarantee system.
The Digital Transformation:
E-Bank Guarantees for MSMEs and Corporates:
- HSBC India’s electronic bank guarantee services are accessible to both MSMEs (Micro, Small, and Medium Enterprises) and corporate clients.
Replacing Paper with Digital:
- The primary goal of this initiative is to digitize the trade finance sector, thereby eliminating the need for paper-based bank guarantees.
E-Stamping and E-Signing:
- To achieve a complete digital transformation, the process incorporates e-stamping and e-signing, making the issuance of guarantees a seamless digital experience.
Benefits of the New Solution:
Instant Access to Bank Guarantees:
- With the new digital system, applicants can instantly access their bank guarantee through the NeSL portal.
Accelerated Transaction Cycles:
- This innovative approach significantly reduces the transaction cycle time. What used to take 2-3 days in the traditional system now takes only a few minutes.
Enhanced Security and Efficiency:
- E-bank guarantees offer heightened security measures and increased efficiency compared to the paper-based guarantee process.
- National E-Governance Services Ltd (NeSL), operating under the framework of the Insolvency and Bankruptcy Code, 2016, serves as a repository for legal evidence related to debt and claims. It verifies and authenticates debt information submitted by financial or operational creditors.