Kotak Mahindra Bank collaborates with NeSL to issue electronic Bank Guarantee; details here
Kotak Mahindra Bank has announced a new partnership with National E-Governance Services Limited (NeSL) to issue its inaugural electronic Bank Guarantee (e-BG) through its platform. This collaboration is poised to usher in the era of digital trade, effectively eliminating the traditional paper-based issuance of Bank Guarantees.
The digital transformation encompasses the issuance, modifications, closures, digital stamping, and signing processes, resulting in a significant reduction in the guaranteed turnaround time (TAT). This new approach enables guarantees to be processed in just a few hours, a stark improvement compared to the two to three working days required by the conventional paper-based method.
Additionally, the e-BG enhances security by mitigating authentication risks. 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, stated, “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.
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