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HSBC India Launches E-Bank Guarantees to Modernize Trade Finance

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.

NeSL’s Role:

  • 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.

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