CURRENT AFFAIRS

Detailed explanation-1: -Mumbai, September 12, 2022: HDFC Bank, India’s largest private sector bank, on September 4th, 2022, became the first bank in the country to issue an Electronic Bank Guarantee (e-BG) in partnership with National E-Governance Services Limited (NeSL).

Detailed explanation-2: -On its 117th Founder’s day, Canara Bank launched an Electronic Bank Guarantee (e-BG) in partnership with National E-Governance Services Limited (NeSL).

Detailed explanation-3: -What is an Electronic Bank Guarantee (E-BG)? An Electronic Bank Guarantee (e-BG) eliminates the physical documentation usually associated with issuance of BG. It reduces the turn-around time of the BG issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes.

Detailed explanation-4: -(i) As a general rule, banks may provide only financial guarantees and not performance guarantees. (ii) However, the scheduled banks may issue performance guarantees on behalf of their constituents subject to exercising due caution in the matter.

Detailed explanation-5: -The first party is the bank that issues the guarantee at the request of its customer. The customer on whose behalf the bank issues the guarantee is the second party, while the beneficiary of the guarantee-that is to say, the person to whom and in whose favor the guarantee is issued-is the third party.