The National Commodity & Derivatives Exchange Limited (NCDEX), July 19, 2024, issued a circular acceptance of the Bank Guarantee in electronic form.
The introduction of E-BG shall reduce the time taken for the process of bank guarantee acceptance and will eliminate issues related to paper-based documents.
The process of acceptance of E-BG shall be as follows:
• Issuance of New E-BG
o Members can approach banks empanelled by NCCL for issuance of E-BG. (The list of Banks eligible for issuance of E-BG is provided in Annexure 1)
o The bank guarantee shall be strictly in the format prescribed by NCCL. (Existing format for BG in physical form shall continue for E-BG)
o Members shall ensure that the SFMS message is sent by the issuing bank before the new/renewal BG is submitted to NCCL.
• Release of E-BG
o There shall be no change in the process for the release of BG.
o For release of E-BG, members shall be handed over the release letter only.
o For the release of E-BG where the original BG is in physical form, the members can collect the release letter along with the original BG in physical form.
There is no change in the process of acceptance, renewal and release of BG in physical form.
The circular shall be effective from August 01, 2024.
[Circular No. : NCCL/CLEARING/038/2024]
