![Indian Overseas Bank launches electronic bank guarantee scheme Indian Overseas Bank launches electronic bank guarantee scheme](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiflC7xzEKOevjBgYfQ4y2ZYm2XT78dZmXJ8Bj5wXcbi0sxWZ7DQe0oLix1NyUnGNQt7xqCduvZ8P0sOk-8blpW0vrrI7rlJZhfZeXgOgfsqhjvTc6W5J7K5SlT8WH7xO9VkP8lGJsT-D_nLkvlDVeX2osV3wlQtXerl4qd1M32TXqyd6JvPmUcoOMM/w320-h178-rw/Indian%20Overseas%20Bank%20Limited%202.jpg)
- The e-BG is a digital instrument issued by the bank to ensure the fulfilment of a specific action/performance by the applicant, and to prevent the occurrence of fraud and manipulation.
- It is essentially a promise made by the bank to cover losses in the event of loan default by the borrower.
- Unlike the traditional paper-based bank guarantees that require physical stamping and wet signatures, the e-BG is issued instantly in a paperless mode with digital stamping and digital signature through NeSL’s Digital Document Execution (DDE) platform.
- This ensures real-time issuance of e-BG, which not only enhances transparency but also reduces the turnaround time from days to minutes.
- Prior to this launch, HDFC Bank and State Bank of India (SBI) also launched e-BG in association with NeSL.
- Headquarters – Mumbai, Maharashtra
- Managing Director & CEO – S. Ramann
Question:
Q.1 What is e-BG?
a. A type of bank account
b. A digital instrument issued by a bank as a guarantee
c. A government scheme for digital payments
d. A type of loan offered by banks
a. A type of bank account
b. A digital instrument issued by a bank as a guarantee
c. A government scheme for digital payments
d. A type of loan offered by banks