Industries that are highly regulated and governed, seldom have no scope for innovation. The nature of the regulations and the key aim of regulating the sector is to ensure compliance and adherence to a predefined process and steps. The BFSI industry is perhaps one of the best examples of a HIGHLY REGULATED industry.
NeSL is India’s first Information Utility and is regulated by Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016 (IBC). The company has been set up by leading banks and public institutions. The primary role of NeSL is to serve as a repository of legal evidence holding the information pertaining to any debt/claim, as submitted by the financial or operational creditor and verified and authenticated by the parties to the debt. Digital Document Execution (DDE) is a service offered under the Information Utility framework devised by IBBI. NeSL’s DDE solution is a part of the IU suite of services. NeSL’s Digital Document Execution (DDE) is an innovative solution which provides execution of legally enforceable paperless documentation through e-stamping and e-signing. It contributes to sustainability as it entails paperless documentation, digital storage & record management. The recent initiative by the Government of India to build and strengthen the nation’s Digital Public Infrastructure has been a catalyst to innovation in the BFSI industry.
In its simplest form, DDE offers a 100% paperless and digital means to execute agreements and contracts using e-stamp and e-sign. This simple solution is being leverage by Banks and NBFC’s across the country to execute agreements of various nature. Typically, executing a loan in the past required 100% paperwork and it stretched across to several weeks and required physical customer visits to the Bank etc…
DDE critically helps
- Reduce lead time to execute contracts
- Eliminates paperwork: Digitally stamped and signed documents can be stored and retrieved virtually
- No bank visits for customers
- It is SECURE – Audit logs and trails ensure evidenced digital documentation
- Digital e-stamp and e-sign ensures 100% legal adherence and convenience to customer
DDE transactions on NeSL platform recently crossed the landmark of 3 million transactions, with a high hit of 20000 transactions in a day. It was launched in May 2020, since then the platform touched 3 million DDE transactions as on 14th September 2023.
Since its launch, DDE has served many use cases across 35 Banks and NBFC’s in India. DDE’s simple framework allows it to be leveraged innovatively for various services offered by Banks and NBFC’s. Some of the unique used cases of DDE are
LOAN CONTRACTS / AGREEMENTS
Loan instruments as a significant source of revenue earnings for the banking industry and Banks today offer a wide range of loan instruments for different needs of consumers whether Individual or Businesses Loans.
Digitisation of such agreements has sped up the execution and disbursement of loans to customers ensuring Banks are serving customers efficiently. Also, the convenience of executing such agreements digitally sitting at the comfort of their office or home makes the process seamless and contactless.
NeSL’s DDE has integrations across 24 states for e-stamping documents giving Banks and NBFC’s the reach to execute contracts across the country and across a variety of their offerings (with new use cases being added each day) under one platform.
OPERATIONAL CONTRACTS
A uniqueness to the DDE framework is the legal parenthesis on how through a host of state defined article codes e-stamping can be accommodated. This means that contracts that are operational in nature can also be executed digitally in a 100% paperless.
Banks and other Financial Institutions are exploring and discovering services that can be contracted on DDE. Some of the recent executions are Demat Debit and Pledge Instruction (DDPI) by a large online trading platform, locker agreements by banks. There are more unique operational contracts that can be executed using DDE saving time, resources and money and executed at anytime of the day or night.
GOVERNMENT SCHEMES (Financial Inclusion Programs): NeSL DDE is powering several Government run financial inclusion programs that is driving change and aligned to the nations goal of building a Digital Economy that reaches beyond urban cities into the rural corners of the nation. such as
- Agri Loan
- KCC – Kisan Credit Card
- Jan Samarth: NeSL’s DDE is integrated with Jan Samarth portal to provide paperless and digital documentation for online loans by public sector loans under credit linked subsidy scheme by the Government of India.
- PM SVANidhi program that supports micro entrepreneurs
