Commercial banking company, Yes Bank, on Thursday said it has issued its first Electronic Bank Guarantee (e-BG), in pact with National E-Governance Services Limited (NeSL), an Information Utility (IU) appointed by the Insolvency and Bankruptcy Board of India (IBBI).

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An Electronic Bank Guarantee (e-BG) mainly eliminates the physical documentation usually associated with issuance of BG. It reduces the turn-around time of the BG issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes. While, a bank guarantee is a kind of assurance from a lending organisation. The bank guarantee signifies that the lending institution ensures that the liabilities of a debtor are going to be met.

The API integration with the Digital Document Execution (DDE) platform of NeSL has enabled complete digitisation of the existing paper-based process for issuance and maintenance of Bank Guarantee (BG), according to a statement by the company.

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"The integration with NeSL is in line with our strong track record of collaborating with public digital utilities like Central Bank Digital Currencies (CBDC), Open Network for Digital Commerce (ONDC), Account Aggregator (AA), and Government e-Marketplaces (GEM), to accelerate digitization and enabling ease of doing business for our Micro, Small and Medium Enterprises (MSME) and corporate customers. The Bank has embarked on this transformational journey to comprehensively DIGITIZE the entire BG management process and deliver a superior customer experience, while reducing costs and facilitating secure transactions," said Ajay Rajan, Country Head – Digital and Transaction Banking Group, Yes Bank.

The NeSL portal will manage the entire lifecycle of the BG including issuance, amendment, invocation and cancellation, the Mumbai-headquartered bank revealed.

Debajyoti Ray Chaudhuri, NeSL Managing Director and Chief Executive Officer, said, "In today’s era of instant messaging, there is no reason why a beneficiary of a BG should wait for the BG instrument to be delivered through a courier service or hand delivery, followed by a tedious process of verifying the authenticity of the same. An e-BG issued through NeSL’s e-BG platform, becomes instantly available and the beneficiary can access it on completion of a simple and one-time registration process. NeSL’s e-BG platform is available 24/7 and I congratulate YES BANK on issuing its first e-BG on the platform. As the movement gathers momentum, it will do wonders to reducing business cycles and facilitate ease of doing business in the country."

Founded in 2004 by Rana Kapoor and Ashok Kapoor, Yes Bank is a full service commercial bank providing a complete range of products, services and technology driven digital offerings, catering to retail, MSME as well as corporate clients. The bank operates its investment banking, merchant banking and brokerage businesses via Yes Securities, a wholly owned subsidiary of the Bank.

At the beginning of the month, Yes Bank hiked lending rates by 5 bps across tenures. Stocks of Yes Bank settled at Rs 15.20 apiece, down over 0.6 percent, when the market closed today, March 23, 2023.

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