Indian Overseas Bank launches electronic bank guarantee scheme

Public sector Indian Overseas Bank has launched the facility of issuance of e-BG (Electronic Bank Guarantee) scheme in association with the National e-Governance Services Ltd, the bank said on Wednesday.

The e-BG is an instrument issued by the city-headquartered bank in which the bank undertakes to guarantee a specific amount against the non-fulfillment of some action/performance of the applicant.

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 time saving which in turn would fast track all the business purpose for which it is issued, the bank said.

"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.