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October 8, 2025 5:40 PM IST

National e-Governance Division | NeGD | Electronics and Information Technology Ministry | National E Governance Services | NeSL | electronic bank guarantees | eBGs | India | MeitY | Paperless governance | e bank guarantees

India moves closer to paperless governance with real-time digital execution of e-bank guarantees

In a major step toward strengthening digital governance and ease of doing business, the National e-Governance Division (NeGD) under the Ministry of Electronics and Information Technology (MeitY), and the National E-Governance Services Limited (NeSL) have signed a landmark Memorandum of Understanding (MoU) to integrate digital document execution for electronic bank guarantees (e-BGs).

The MoU was formalised at the Global Fintech Fest 2025 in the presence of J.L. Gupta, Director, NeGD, and Debajyoti Ray Chaudhuri, MD and CEO, NeSL.

Under this partnership, NeGD’s cloud-based Entity Locker platform – an extension of the DigiLocker initiative – will integrate with NeSL’s Digital Document Execution (DDE) platform. This will enable seamless, paperless, and secure execution of contracts, including legally enforceable e-BGs.

The integration allows beneficiaries and applicants to securely access digitally executed bank guarantees from NeSL’s e-BG repository directly through their Entity Locker accounts. This digital workflow promises faster turnaround, increased transparency, and enhanced legal compliance.

NeSL’s e-BG offers multiple advantages: secure and tamper-proof documents; faster issuance-within minutes compared to days for physical guarantees; end-to-end digital processing of issuance, renewal, and invocation; eco-friendly, paperless process; and easy verification through a central repository.

Speaking on the collaboration, J.L. Gupta said, “We are expecting more such collaborations with NeSL in the future. With NeSL’s e-stamp paper service, users can procure e-stamp paper and sign contracts digitally in real time using e-signing, ensuring a seamless, paperless, and legally valid process.”

Debajyoti Ray Chaudhuri added, “NeSL’s e-BG addresses all challenges associated with traditional physical bank guarantees. It is accessible, affordable, and particularly beneficial for MSMEs, who can now use the Entity Locker to access a complete bouquet of digital services.”

Both NeGD and NeSL have reaffirmed their commitment to data security and confidentiality, ensuring compliance with the Insolvency and Bankruptcy Code, 2016 and relevant privacy regulations.

 

Last updated on: 10th Oct 2025