Yes Bank Issues Its First E-Bg

Yes Bank, a commercial bank, announced on Thursday that it had issued its first Electronic Bank Guarantee (e-BG) in collaboration with National E-Governance Services Limited (NeSL), an Information Utility (IU) designated by the Insolvency and Bankruptcy Board of India (IBBI).

An Electronic Bank Guarantee (e-BG) obviates the need for physical documentation that is typically associated with the issuance of BG. It reduces the industry average of 3-4 working days for BG issuance and delivery to the beneficiary to a few minutes. A bank guarantee, on the other hand, is a type of assurance from a lending institution. The bank guarantee indicates that the lending institution guarantees that a debtor’s liabilities will be met.

According to a company statement, the API integration with NeSL’s Digital Document Execution (DDE) platform has enabled complete digitisation of the existing paper-based process for the issuance and maintenance of Bank Guarantee (BG).

Yes Bank

“The integration with NeSL is consistent with our strong track record of collaborating with public digital utilities such as Central Bank Digital Currencies (CBDC), Open Network for Digital Commerce (ONDC), Account Aggregator (AA), and Government e-Marketplaces (GEM) to accelerate digitization and enable ease of doing business for our MSME and corporate customers. The bank has embarked on this transformational journey to DIGITIZE the entire BG management process in order to provide a superior customer experience while reducing costs and facilitating secure transactions “Yes Bank’s Country Head – Digital and Transaction Banking Group, Ajay Rajan, elaborated.

According to the Mumbai-based bank, the NeSL portal will manage the entire lifecycle of the BG, including issuance, amendment, invocation, and cancellation.

NeSL Managing Director and Chief Executive Officer Debajyoti Ray Chaudhuri stated, “In this day and age of instant messaging, there is no reason why a beneficiary of a BG should have to wait for the BG instrument to be delivered via courier or hand delivery, followed by a time-consuming process of verifying its authenticity. An e-BG issued through NeSL’s e-BG platform is immediately available, and the beneficiary can access it after completing a simple one-time registration process. NeSL’s e-BG platform is available 24 hours a day, seven days a week, and I congratulate YES BANK on issuing its first e-BG on the platform. As the movement gains traction, it will help to reduce business cycles and make doing business in the country easier.”

4Yes Bank, founded in 2004 by Rana Kapoor and Ashok Kapoor, is a full-service commercial bank that offers a comprehensive range of products, services, and technology-driven digital offerings to retail, MSME, and corporate clients. Yes Securities, the bank’s wholly owned subsidiary, operates the investment banking, merchant banking, and brokerage businesses.

Yes Bank raised lending rates by 5 basis points across tenures at the start of the month. Yes Bank stock closed today, March 23, 2023, at Rs 15.20 per share, down more than 0.6 percent.