Over 60 institutions, including banks, NBFCs, capital market entities, and corporate entities, will issue, renew, and invoke bank guarantees within a few minutes. It currently takes days to issue a bank guarantee.
The National e-Governance Division (NeGD), under the Ministry of Electronics and Information Technology (MeitY) and National E-Governance Services (NeSL), an Information utility regulated by the Insolvency and Bankruptcy Board of India (IBBI), entered into a landmark Memorandum of Understanding (MoU) to enhance and integrate digital document management for businesses and government entities.
NeGD’s cloud-based document management platform, Entity Locker- an extension of the DigiLocker initiative aimed at streamlining document issuance, storage, sharing, and verification will integrate with NeSL’s Digital Document Execution (DDE) platform. NeSL’s DDE platform is a pioneering solution facilitating digital, paperless and secure execution of contracts, including electronic bank guarantees (e-BGs), which are legally enforceable in a digital form.
NeGD expects more such collaborations with NeSL in the future, says its director, JL Gupta. “With NeSL’s e-stamp paper service, one can procure e-stamp paper and sign contracts in real time digitally using the e-signing facility; ensuring a seamless, paperless, and legally valid process,” he adds.
NeSL’s e-BG addresses all the challenges in the traditional physical BGs. It is also easily accessible and affordable, says Debajyoti Ray Chaudhuri, MD and CEO, NeSL.
