Federal Bank partners NeSL for eBank Guarantees

Mumbai: Federal Bank has partnered with National E-Governance Services Limited (NeSL) to launch its customers' electronic Bank Guarantee (e-BG) facility. With this facility, Federal Bank's customers can now digitally obtain a Bank Guarantee, replacing the traditional paper-based process.

The e-BG facility facilitates the issuance, invocation, amendment, and cancellation of Bank Guarantees digitally, removing the need for physical printing of any document or request. The platform is safe, secure, and fast, making trade and business activities convenient. Eligible customers include individuals, sole proprietors, companies, partnership firms, government agencies, associations of people, and bodies of individuals. Currently, the service is available only in states where e-stamping is available.

Commenting on the partnership, Debajyoti Ray Chaudhuri, MD & CEO of NeSL, said, "An e-BG issued through NeSL's e-BG platform becomes instantly available, and the beneficiary can access it upon completion of a simple and one-time registration process. Invocation, cancellation, and amendments of e-BGs can also be done seamlessly digitally. As the movement gathers momentum, it will do wonders to reduce business cycles and facilitate ease of doing business in the country."

Shalini Warrier, Executive Director of Federal Bank, stated, "We are proud to have gone live with e-Bank Guarantee in association with NeSL. We thank NeSL for pioneering this initiative, and we are truly delighted to be one of the few Banks offering this feature."

Besides saving time, the e-BG enables faster communication, reducing opportunities for fraud, ensuring correct payment of stamp duty, and lowering the cost of storage and retrieval.