StanChart Collaborates With NeSL To Launch API-Driven Electronic Bank Guarantee

Standard Chartered Plc. is collaborating with the National e-Governance Services Ltd. to launch an electronic bank guarantee capability in India. The eBG enables Standard Chartered and its clients to digitally manage the life cycle of the guarantee and provides real-time visibility across the ecosystem for all counterparties to manage and monitor their guarantees.

This capability aligns with the open application programming interface standards, developed by International Chamber of Commerce and Society for Worldwide Interbank Financial Telecommunications.

The bank aims to integrate API-driven solutions that enhance interoperability, operational efficiency and real-time visibility in the banking sector. This approach facilitates integration of banking functions into corporate systems and helps drive digitisation of trade finance.

“We are pleased to partner with NeSL to introduce the eBG, which is a significant step towards a more efficient and future-ready digital trade ecosystem both in India and globally,” said Michael Spiegel, global head, transaction banking at Standard Chartered.

The eBG platform helps to make transactions faster and more secure, according to Standard Chartered. Initiation and electronic advising via NeSL eBG platform removes paper handling in the process, accelerating the issuance and management of guarantees.

API-driven solutions also offer transparency and real-time updates, improving efficiency of trade finance transactions. By adopting the standards, Standard Chartered is also setting a precedent for global adoption.

“NeSL’s eBG is paperless and available in a digital form to the beneficiary of an eBG on registration on the NeSL’s eBG portal. The process of user registration is simple and one time. For bulk users of eBGs, NeSL also offers integration with the ERP systems through an API,” said Debajyoti Ray Chaudhuri, managing director and chief executive officer of NeSL.

Hitachi Systems India Pvt. is the first client to mandate Standard Chartered for API initiation of eBG and onward transmission via NeSL platform. 

“We are an innovation-driven organisation and look forward to more opportunities to work with Standard Chartered on digital initiatives which make our processes more efficient, simple and paperless,” said Rajeev Garg, director and chief financial officer at Hitachi Systems India.