YES Bank has collaborated with National E-Governance Services Limited (NeSL) to issue its first electronic Bank Guarantee (e-BG).
Bank Guarantee: A bank guarantee is a kind of guarantee from a lending organization. The bank guarantee signifies that the lending institution ensures that the liabilities of a debtor are going to be met. In other words, if the debtor fails to perform the obligation, the bank will cover it. A bank guarantee allows the customer, or debtor, to acquire goods, purchase equipment or draw down a loan.
“A bank guarantee is a promise from a bank or other lending institution that if a particular borrower defaults, the bank will cover the loss. A bank guarantee is similar to but not the same as a letter of credit.”
The integration of their digital document execution (DDE) platform has made it possible to completely digitize the previous paper-based process of issuing and maintaining Bank Guarantees. This includes the digital stamping and signing, which has significantly reduced the time it takes to issue Bank Guarantees.