MUMBAI, GPN, October 25, 2023: The first electronic Bank Guarantee (e-BG) to be issued on the platform of National E-Governance Services Limited (NeSL) was announced today by Kotak Mahindra Bank Limited (KMBL/Kotak) in collaboration with the latter.

The partnership makes it possible for trade to be digitalized, which helps do away with the need to provide bank guarantees on paper. As a result of the digitization, which includes digital stamping, signature, issuance, amendment, and closing, the Guarantee turnaround time (TAT) is now only a few hours as opposed to two to three working days for the paper-based procedure. The authentication dangers are also lessened by the e-BG.

Paritosh Kashyap, President & Head Wholesale Banking, Kotak Mahindra Bank said, “Kotak Mahindra Bank has been at the forefront of providing our customers convenience and ease of banking. The partnership with NeSL in providing e-BG for our trade customers eliminates many issues both the lender and issuer face with endless paperwork, including several verification stages. Our focus on customer-centricity and innovation has led us to an early adoption of digital transformation in our banking services. We are committed to enhancing our customers’ experience across all products and services we offer in the banking industry, with e-BG being one of them.”

Debajyoti Ray Chaudhuri, MD & CEO, NeSL said, “e-BG brings a paradigm shift in the way we do trade finance and is a milestone in the digitisation of banking services. e-BG substantially reduces the time taken in the issuance and the other life cycle events of a bank guarantee, like an invocation. In an era of instant messaging, it’s appropriate that the e-BG is instantly available on issuance in a secure and digital form to the beneficiaries.”

The NeSL site provides the beneficiary with real-time access to digitally issued bank guarantees through the use of NeSL’s Digital Documents Execution (DDE) technology. The digital issue of e-BGs spares the applicant and beneficiary from extra work and time by doing away with the requirement for a separate authentication from the bank guarantee providing bank. Additionally, the central NeSL archive minimises the potential for exploitation and facilitates the easy retrieval of granted bank guarantees as needed.

About Kotak Mahindra Group 

Kotak Mahindra Group, one of India’s top financial services companies, was founded in 1985. The Group’s flagship company, Kotak Mahindra Finance Ltd. (KMFL), converted into Kotak Mahindra Bank Ltd. (KMBL), the country’s first non-banking finance company, after receiving a banking licence from the Reserve Bank of India (RBI) in February 2003.

The financial services provided by Kotak Mahindra Group (Group) span all aspects of life. The Group provides a wide range of financial services to meet the needs of both individuals and businesses, including investment banking, stock broking, mutual funds, life and general insurance, and commercial banking. The core of the Kotak Mahindra Group’s business strategy is focused, varied financial services in India. With a variety of services and solutions tailored to meet the requirements of the underbanked and unbanked, the Group’s ambitious growth objective is inclusive.

With offices in London, New York, Dubai, Abu Dhabi, Singapore, and Mauritius, respectively, Kotak Mahindra Group has a global footprint through its subsidiaries in the UK, USA, Gulf Region, Singapore, and Mauritius. As of September 30, 2023, Kotak Mahindra Bank Ltd. operated 1,850 branches, 3,170 ATMs, and branches in GIFT City and DIFC (Dubai) around the country.

About National E-Governance Services Limited (NeSL)

According to the terms of the Insolvency and Bankruptcy Code, 2016 (IBC), National E-Governance Services Limited (NeSL) is the first information utility in India to be registered with the Insolvency and Bankruptcy Board of India (IBBI). Prominent financial firms and governmental bodies founded the business. NeSL’s main function is to act as a repository of legal evidence, containing data related to any debt or claim that has been filed by a financial or operational creditor and confirmed and validated by the debtor’s parties. NeSL provides paperless Digital Document Execution (DDE) for a range of products supplied by banks and NBFCs as part of their IU services. Additionally, it provides an Electronic Bank Guarantee (e-BG) solution that resolves every issue with the current physical issuing method.