Indian Overseas Bank, a public sector bank headquartered in Chennai, has recently launched the facility of issuance of e-BG (Electronic Bank Guarantee) scheme in association with the National e-Governance Services Ltd. This move is aimed at promoting digitization in banking services and providing a more efficient and convenient experience for customers.
The e-BG scheme is an instrument issued by the bank in which the bank undertakes to guarantee a specific amount against the non-fulfillment of some action/performance of the applicant. The electronic format of bank guarantee offers several advantages such as eliminating the need for physical paperwork, reducing the time taken for processing, and improving transparency.
This new initiative by Indian Overseas Bank is expected to benefit its customers, especially those in the MSME sector, who require bank guarantees for participating in tenders, contracts, and other business transactions. The e-BG scheme is also expected to help in reducing the cost of processing and improve the overall efficiency of the bank’s operations.
“Our bank is one of the pioneer in launching the Bank Guarantee through digital mode. As on date only few banks have the facility of issuance of e-BG,” Indian Overseas Bank said in a statement here.
Following the path to achieve vision mission statement 2021-2026 to provide best banking solutions through digital experience for customer delight, the bank has introduced and implemented the electronic-bank guarantee scheme, it said.
The National e-Governance Services Ltd. is a government-owned company that provides e-governance services to various government departments, organizations, and citizens across India. Its collaboration with Indian Overseas Bank for the issuance of e-BG is expected to bring more transparency and efficiency to the banking system, which would ultimately benefit the customers.
The launch of the e-BG scheme by Indian Overseas Bank is in line with the government’s efforts to promote digital transactions and reduce the dependence on physical paperwork. It is expected to pave the way for other banks to adopt similar digital initiatives and revolutionize the banking sector in India.
The main features of the e-BG are completely paperless mode with digital stamping and digital signature.
Real-time issuance of e-BG would make it available for the beneficiary instantly leading to timesaving which in turn would fast-track all the business purposes for which it is issued. The Indian Overseas bank is one of the pioneers in launching the Bank Guarantee through digital mode. As of date only a few banks have the facility of issuance of e-BG.
Following the path to achieving the vision mission statement 2021-2026 to provide the best banking solutions through digital experience for customer delight. The bank has introduced and implemented the electronic-bank guarantee scheme.
The launch of the e-BG scheme by Indian Overseas Bank in association with the National e-Governance Services Ltd. is a welcome step towards promoting digitization and efficiency in banking services. This move is expected to benefit customers and improve the overall efficiency of the banking system in India.
