SBI launches e-Bank Guarantee service; Know what it is and how it will benefit customers

India is fully embracing the digital age, and to mark this transition, the State Bank of India, the largest lender in the nation, on Thursday announced an e-Bank Guarantee (e-BG) service in partnership with National e-Governance Services Limited (NeSL). With the introduction of e-BG, this function will be replaced by e-stamping and e-signature.

The State Bank of India claimed in a statement that this service will bring about a revolutionary change in the financial industry, where bank guarantees are often and extensively used. These assurances are currently provided by the bank through moist signatures and physical stamping.

With this new capability, NeSL's Digital Document Execution (DDE) technology—which includes e-Stamp and e-Sign features—will simplify the e-Bank Guarantee process.

Using the NeSL platform, bank clients and other recipients will get an e-Bank Guarantee without further verification. The SBI continued by stating that this action was taken to improve transparency and reduce response times from days to minutes.

Dinesh Kumar Khara, Chairman of SBI, told Live Mint, "It gives us tremendous pleasure to join up with NeSL to simplify the e-BG service. SBI has always been a leader in offering its customers cutting-edge digital choices to make banking services more practical. In this direction, the Electronic Bank Guarantee (e-BG) represents a significant advancement that will shorten the Bank Guarantee life cycle. The programme supports SBI's dedication to offering dependable and approachable financial services.