National E-Governance Services Limited (NeSL) is India’s first Information Utility registered with and regulated by the Insolvency and Bankruptcy Board of India (IBBI) under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). As an Information Utility, NeSL is a repository of financial information submitted by creditors, including banks, NBFCs etc with the provision for all concerned parties to verify and authenticate the debt.
NeSL as an information utility, is a repository of financial information submitted by creditors, including banks, NBFCs etc with the provision for all concerned parties to verify and authenticate the debt. In addition NeSL offers Digital Document Execution Services, e-BG Serivces and also powers digital documentation solutions for various government procurement portals under the provisions of the Insolvency and Bankruptcy Code (IBC)
An Information Utility is a professional organization (which is registered with IBBI under Section 210 of IBC, 2016 as per the eligibility criteria prescribed) that will collect financial information, get the same authenticated by other parties connected to the debt & store the same and provide access to the Resolution Professionals, Creditors and other stake holders in the Insolvency Resolution Process, so that all stake holders can make decisions based on the same information.
The New Law IBC,2016 consolidates the existing framework and creates a new institutional structure, by setting up Information Utility Companies, which will store all the credit information of Corporates/entities/persons. The Certificate & data furnished by IUs are accepted by NCLT/DRTs as legal evidence.
This IU set-up is expected to contribute significantly to the reduction of NPAs in the banking sector, as the code aims to resolve the insolvencies in a time-bound manner.
An Information Utility is a financial repository which collects data/information from the Creditors (Financial and Operational), Debtors and Resolution Professionals about their debt and default. An Information Utility as defined under section 3(21) of the IBC, 2016, means any person registered with the IBBI/Board as an information utility under section 210. It is one of the key pillar of IBC which store the authenticated information about the debt of different parties and provide access to them for the same.
The information provided by the IU in the form of a Record of Default Certificate (ROD), which will be submitted to the NCLT/DRT (Adjudicating Authority) along with the Application, as legal evidence for the initiation of the Insolvency Resolution Process (IRP). It was set up in expectation to contribute significantly for the reduction of NPAs in the banking sector, as the code itself aims to resolve insolvencies in a time-bound manner.
The purpose of the Act is to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, as a regulatory body for Insolvency and Bankruptcy law.
The aim of codifying insolvency law is to provide for greater coherence in law and facilitate the application of consistent and lucid provisions to different stakeholders affected by business failure or the inability to pay debt. To this end, the Code repealed the Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920, and made amendments to 11 laws, including the Companies Act, 2013, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to give effect to the newly codified legislation.
The first objective of the Code is resolution. The second objective is to maximize the value of assets of the corporate debtor and the third is to promote entrepreneurship, availability of credit, and balancing the interests. The Code overhauled the legal regime for corporate distress resolution in India and replaced it with a predictable, market-led, incentive-compliant, and time-bound mechanism.
The information utilities shall act as a regulated information agency which shall accept, electronically record, get authentication, maintain and provide access to financial information to the persons as may be specified in the Regulations e.g., creditors, Adjudicating Authority and other persons having interest in the information.
An Information Utility must maintain an electronic database of information and offer authentic information to reduce delays and disputes connected to claims and defaults. It is the duty of IU to provide access to financial information to the creditors, Adjudicating Authority and other persons having an interest in the information as may be specified in the Regulations.
IUs are required to provide the core services and other servicesspecified underunder the IBC and the IBBI (IU) Regulations Under Section 3(9) of the IBC, “Core services” means services rendered by an information utility for-
The obligationsof Information Utility are mentioned under section 214 of the IBC, which are as follows:
The obligations of Information Utility are mentioned under section 214 of the IBC, which are as follows:
Yes, an Information Utility shall be registered with Insolvency and Bankruptcy Board of India (IBBI), under section 210 of the IBC and Regulation 4 of the IBBI (IU) Regulations 2017 to execute its functions as an Information Utility and to have a “Certificate of Registration” from IBBI. The eligibility criteria for registering as an IU is mentioned under Regulation 3 of the IU Regulations
As per Section 210 of IBC, 2016, the IBBI may order for suspension or cancellation of Certificate of Registration granted to an Information Utility, on certain grounds mentioned therein.
The Board, as per section 210 (5) of the IBC 2016 may order for suspension or cancellation of Certificate of Registration granted to an IU on any of the grounds mentioned herein:
(a) that it has obtained registration by making a false statement or misinterpretation or any other unlawful means;
(b) that it has failed to comply with the requirements of the regulations made by the Board;
(c) that it has contravened any of the provisions of the Act or the rules or the regulations made thereunder;
(d) on any other ground as may be specified by regulations.
Yes, the IBBI Board requires every Information Utility to set up a Governing Board for ensuring that the Information Utility takes into account the objectives sought to be achieved by the Code.
Yes, as per section 212 of IBC, every IU must set up a Governing Board to ensure that it considers the objectives sought to be achieved under this Code with such number of independent members as may be specified by regulations.
Financial information which is defined under section 3(13) of the IBC, 2016, as in relation to a person, means, one or more of the following categories of information, namely
Any party connected to a Debt viz., Creditor (Either Financial Creditor or Operational Creditor), Debtor (or his authorized representative like Auditor), Co-Applicant, Co-borrower, Guarantor, can furnish the information to an IU.
The following shall be required to submit the information:
Standard Format/s will be prescribed once the agreement is entered into with IU / NeSL.Standard Format/s will be provided once the agreement is done with the IU/NeSL.
All debt information irrespective of its health can be submitted to the IU. Accounts in Standard Assets category and before getting delinquent have greater chances of getting authenticated by the borrower, which the Creditor can fall back on in case of default.
All debt information, regardless of its condition, can be submitted to IU. Accounts in the normal assets category and prior to becoming delinquent have a higher possibility of being validated by the borrower, which the creditor can rely on in the event of default.
The word default is defined under Section 3(13) of the IBC, 2016 as,non-payment of debt when the whole or any part or instalment of the amount of debt has become due and payable and is not repaid by the debtoror the corporate debtor.
As per Section 9(4) the operational creditor may propose a resolution professional to act as an IRP.
In case of an application submitted by a Financial Creditor or Corporate debtor, the Adjudicating Authority (NCLT) shall appoint an IRP and in case of an operational creditor, by himself may propose a resolution professional to act as an interim resolution professional.
NeSL, as IU would enable access to the information stored with it, only to parties connected to Debt, Insolvency Resolution Professionals, Liquidators, Adjudicating Authority and IBBI as per Regulation 23.
The NeSL would preserve the information stored with it for a period of 8 years from the date of closure of debt or from the date of last update in a debt account
Yes, all necessary care is exercised by an IU by following the standard practices and guidelines provided under the Regulations.
The authenticated information stored with an IU is treated as legal evidence in the Insolvency Resolution Process. The authenticated information cannot be repudiated. It helps in establishing the facts of borrowing and facts of default. Therefore, this enables saving of time in Resolution Process before the Adjudicating Authority.
The purpose of this is to remove information asymmetry and dependency on the debtor’s management for critical information that is needed to swiftly resolve insolvency.
Yes, the NeSL, as Information Utility, would be collecting the fee for extending its various services like- User Registration, Submission of information, Authentication, Retrieval, Upload of documents / Documents holding fee, etc. Its fee structure for various services is furnished in its website “nesl.co.in”
Any person not satisfied with the service offered by NeSL as an Information Utility may lodge his/her grievance in the Web-based Grievance Redressal Mechanism enabled on its website. NeSL would resolve all such grievances in a time bound manner, within 7 working days and inform the Complainant by e-mail.
In case the maker of the representation is not satisfied with the reply, he can escalate the matter to Grievances Redressal Committee of NeSL, which would be examined by the said Committee and resolution would be ensured in 10 working days.
A registered user may file a complaint/grievance in respect of the services provided by NeSL online by logging on to the website and fill in the format provided. All the complaints/grievances received from users will be acknowledged by the Company by way of communication in the form received within a time frame of 3 days by electronic/ other mode and steps should be taken simultaneously for resolving them. The NeSL will endeavor to resolve all complaints within 7 working days. The maximum time within which the Company will dispose of the grievance will be 30 days from the date of receipt as provided on the audit trail of the complaint.
Any person aggrieved by the functioning of an Information Utility may file a complaint with IBBI.
A Creditor means any person to whom a debt is owed and includes a financial creditor, an operational creditor, a secured creditor, an unsecured creditor and a decree holder.
Under section 3(10), the creditors are defined as any person to whom a debt is owed and include a financial creditor, an operational creditor, a secured creditor, an unsecured creditor and a decree-holder.
An Operational Creditor means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred. They are suppliers of good or services to any company or operational debtor.
As per section 5(20) of IBC, an operational creditor means any person to whom an operational debt is owed, including any person to whom such debt has been legally assigned or transferred. It refers to any debt arising from the provision of goods or services, including employment contracts, as well as any amount owed under any legislation.
Financial creditor is any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to. Operational creditor is any person to whom operational debt is owed and includes a person to whom such debt has been legally assigned or transferred to.
Financial creditors are defined as everyone who has provided the debtor with any type of financial facility, they often offer the debtor with credit in some form whereas operational creditors are anyone who is owing an operational debt and provide the debtor with goods or services.
Demand Notice means a notice served by the operational creditor to the corporate debtor demanding repayment of the operational debt in respect of which the default has occurred.
A demand notice is an intimation of a demand or claim given by one party to another, containing a statement of particulars, a demand for payment, and a warning that if such payment is not made within a reasonable period.
As per section 8 of IBC, demand notice means a notice served by an Operational Creditor to a Corporate Debtor demanding the payment of the amount involved in the default.
Demand Notice means a notice served by the operational creditor to the corporate debtor demanding repayment of the operational debt in respect of which the default has occurred.
A demand notice is an intimation of a demand or claim given by one party to another, containing a statement of particulars, a demand for payment, and a warning that if such payment is not made within a reasonable period.
As per section 8 of IBC, demand notice means a notice served by an Operational Creditor to a Corporate Debtor demanding the payment of the amount involved in the default.
As per Section 24 of IBC, the operational creditors are only permitted to attend CoC meetings if their debt exceeds 10% of the total debt to be paid to the creditors. The directors, partners and one representative of OC may attend the meeting of the CoC, but shall not have the right to vote in the meeting.
In the case of Operational Creditor, as per 9(5) of the IBC, the AA shall within a period of fourteen days of the receipt of the application, by an order admit the application, if it is complete and no disciplinary proceedings are pending against the proposed resolution professional, or, reject the application if it is not complete or any disciplinary proceeding is pending against the proposed resolution professional.
As per Rule 5(2)of the NCLT Rule 2016 the demand notice or a copy of the invoice may be delivered to the corporate debtor at the registered office by hand, registered post or speed post with acknowledgement due or by electronic mail service to a whole-time director or designated partner or key managerial personnel of the corporate debtor.
The corporate insolvency resolution process (CIRP) can be initiated against –a debtor bya Financial Creditor under section 7 of the IBC or by an Operational Creditor under section 9. Also, the Corporate Debtor himself can initiate a CIRP under section 10 of the IBC.
In cases where Insolvency Resolution Process has commenced, the Resolution Professional can submit the information on the proceedings of meetings, records etc., in a Debt Account to the Information Utility, for storing. An IU is required to extend such a service.
Yes, any party associated with the debt, whether financial or operational creditor, debtor or his authorised representative, co-applicant, co-borrower, or guarantor, may submit the information to IU.
An Information Utility in all cases shall enable the User (Registered as User) to view the data on which the information was last updated, the status of authentication/verification while providing access to information.
Yes, in all situations, an Information Utility shall allow the User (Registered as User) to view the data on which the information was last updated and the status of authentication/verification while granting access to information.
An Information Utility shall provide every Registered User an annual statement of all information pertaining to that User, free of charge.
An Information Utility shall give a free annual statement of all information relevant to each Registered User.User can find the option to request annual statement under the Reports Tab, post login.
A User shall expeditiously update the information submitted by it to an Information Utility. Further, a User shall expeditiously correct the information as soon as it finds it erroneous, stating reasons, if any.
A user, who has submitted information in Form C of the schedule to an information utility, shall submit the information updated as on the last day of every month, in the first week of the following month, provided, that information of default shall be updated within 7 days of the occurrence of default.
The Adjudicating authority can reject the application and shall communicate the decision to operational creditor if
Yes, the adjudicating authority shall reject the application, if,
If the operational creditor willfully or knowingly concealed in an application under Section 9 the fact that the corporate debtor had notified him of the dispute in respect of the unpaid operational debt or the full and final repayment of the unpaid operational debt or has knowingly and willfully authorized or permitted such concealment, such operational creditor or person shall be punishable with imprisonment for a term which shall not be less than one year but may extend to five years or with fine which shall not be less than one lakh rupees but may extend to one crore rupees or with both.
Yes. This would help in providing a qualitative service at cheaper cost/s.
The procedure for the registration of an entity is simple, you can find the detailed procedure in the links given below:
Entity Registration using Aadhaar: Click here
Entity Registration using DSC: Click here
The procedure for the registration of an entity is simple, you can find the detailed procedure in the links provided :
Individual Registration using Aadhaar: Click here
Individual Registration using DSC: Click here
You can find the detailed procedure in the link provided : Click Here
You can find the detailed procedure in the link provided : Click Here
The procedure for the registration of an Insolvency Professional is simple, you can find the detailed procedure in the links provided :
Insolvency Professional Registration using Aadhaar: Click here
Insolvency Professional Registration using DSC: Click here
As per the provisions of IBC, 2016 & IU Regulations, the financial information furnished by one of the parties connected to a debt needs to be verified & authenticated by all other parties connected to the debt by affixing their digital signature or Aadhar based e-signature. The authentication process also allows for raising a dispute along with a reason, under digital signature of the party. NeSL stores the authenticated information with it, for providing access to the persons specified in the Act, during the Insolvency Resolution Process. The process of Authentication under the IU Regulation 21 also provides for treating the information as 'Authenticated' or 'Deemed to be Authenticated' where the debtor do not take any action despite multiple reminders as specified under the Regulation.
To authenticate the details,the user needs to first login to the NeSL portal and follow the steps given below:
If the demand is disputed and if such dispute has been raised before the issuance of the notice, application shall not be admitted as the Adjudicating Authority is not empowered to go into the dispute. Thus, application can be admitted only if demand of the debt is undisputed.
If the demand is challenged and the dispute was raised prior to the issue of the notice, the application will be denied since the Adjudicating Authority is not authorized to investigate the dispute. As a result, an application can be accepted only if the debt demand is uncontested.
Yes. All the parties connected to Debt need to electronically authenticate the information with an IU, in order to store the information.
Yes, to store the information, all persons associated with Debt must electronically authenticate the information stored with an IU.
Yes, the party authenticating the information is provided with an option to review and affix his remarks item-wise for the data, while authenticating the information furnished by an Information Utility. Such disputed details would be referred back to financial creditor/banks for resolution.
For Authentication of Debt Information i.e., in cases where default is not reported in a loan record:
For Authentication of Default Information i.e., in cases where default is reported in a loan record:
To access information from an Information Utility, a person must pay such fees and access/retrieve such information in the form and manner provided in the Regulations.The applicant must submit the prescribed information retrieval request form. The format is available on the NeSL Web site. When NeSL receives the request, it verifies his/her identity and relationship to the debt and, if satisfied, grants access to the connected debt information.
You can find the detailed procedure in the link provided : Click Here
It can be submitted in Form C – Data Input File Format prescribed and published by NeSL in its Website.
The user shall submit the information to IU through Form C and its format is given under the schedule of IBBI (IU) Regulation 2017. The IU will accept the information with necessary modifications as it deems fit.
"As per the IU Regulation 27, information submitted in Form C to an
information utility, must be updated on a monthly basis as on the last day of every month, in the first week of the following month. Information of default must be updated within seven days of occurrence of default."
A user, who has submitted information in Form C, shall submit the information updated as on the last day of every month, in the first week of the following month, provided that information of default shall be updated within seven days of occurrence of default.
It can be submitted in Form No.3 or a copy of an invoice attached with a notice in Form 4 as per Rule 5(1) of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016
The submission of demand notice is given under Rule 5 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016/NCLT Rules, 2016, From 3 or a copy of the invoice attached with a notice in Form 4.
The information regarding all invoices lodged with the debtor can be submitted to the IU which when get authenticated by the debtor can be helpful to Operational Creditor who can fall back in case of default. When the same Operational Creditor is providing services / supply of goods to a particular Corporate Debtor involving multiple invoices, the Operational Creditor can submit consolidated data/ information / documents to an Information Utility.
Information on all invoice lodged with the debtor can be given to the IU, which, once authenticated by the debtor, might be useful to the operational creditor, who can fall back in case of default. When the same Operational Creditor provides services or supplies commodities to a certain Corporate Debtor involving many bills, the Operational Creditor might provide consolidated data/information/documents to an Information Utility.
Any person may submit financial information to the information utility or access the information from the information utility on payment of requisite fee in such form and manner as may be specified by IU Regulations.
Before submitting the financial information, the person/entity has to enroll itself as a “User” with the Information Utility by declaring its identity and producing the identity documents like- Aadhaar, PAN, CIN Number etc. NeSL would be verifying the identity and only thereafter, User Registration will be done and User Id informed, by e-mail. For Institutions like- Banks/FIs, a Super User would be created with a facility to create sub-users. Details would be communicated to individual banks/FIs.
For further details on User Registration and Submission of Information, please refer to “Detailed guidelines on User Registration Form” published in NeSL’s Website.
As per Section 3 (23), the word “Person” includes- an individual, a Hindu Undivided Family, a Company, a Trust, a Partnership, a Limited Liability Partnership; and any other entity established under a statute and includes a person resident outside India.
(a) Any person intending to submit financial information or access information from the IU must pay the applicable fee and submit information in the form and manner specified by regulations;
(b) A financial creditor must submit financial information and information relating to assets to which a security interest has been credited in the form and manner specified by regulations; and
An operational creditor may submit financial information to the IU in such form and manner as may be specified.
Financial information which is defined under section 3(13) of the IBC, 2016 as, in relation to a person, means one or more of the following categories of information, namely:
Yes. Section 215(2) stipulates that Financial Creditor shall furnish the information on a debt to an Information Utility. Similarly, the Operational Creditor is also required to furnish the information on an operational Debt to an IU.
The following shall be required to submit the information:
On receipt of information submitted by a Registered User, an Information Utility shall assign a Unique Identifier to the information including records of debt, acknowledge and notify the User of Unique identifier to the Information (Debt), the terms and conditions of authentication/verification and the manner in which the information can be accessed by other parties.
Yes, the operational creditor may submit the information to any other Information Utility as per IBC.
Yes, a person may modify or update or rectify an error, in the financial information submitted to an Information Utility by stating reasons in the manner as may be prescribed in the Code/Regulations.
You can find the detailed procedure in the link provided : Click Here
You can find the detailed procedure in the link provided : Click FAQs – NeSLHere
You can find the detailed procedure in the link provided : Click Here
You can find the detailed procedure in the link provided : Click Here
You can find the detailed procedure in the link provided : Click Here
You can find the detailed procedure in the link provided : Click Here
You can find the detailed procedure in the link provided : Download Sample CFR
To request for RoD, contact our dedicated Support exclusively for request for Record of Default
Call : 88673 92123
Email : rod@nesl.co.in
For IP : To access information of the debtor form Information Utility, register with NeSL IU with AFA and NCLT order. On receiving the request, NeSL would verify his/her identity, complete the Debtor assignment and enable access to the connected debt information.
For Debtor: To access information of the debtor form Information Utility, register with NeSL IU. On receiving the request, NeSL would verify his/her identity and on being satisfied, would provide credentials to access the connected debt information.
Digital e-Stamping is an online electronic secured way of paying non-judicial stamp duty to the government. It is completely secured by a 256 SSL encryption and legally valid in India (Click here to refer States offering Digital E-Stamping)
e-Sign is an online electronic signature service that can facilitate an Aadhaar holder to digitally sign a document. An Aadhaar holder can now sign a document One Time Password authentication thus requiring no paper-based application form or documents. It is completely secured by a 256 SSL encryption and legally valid in India.
Digital Documentation Execution consist of two processes a) e-Sign b) e-Stamping in which e-stamping is optional depending on availability in that particular state and the user’s discretion.
On an average the process of DDE can be completed in just 6 minutes.
Yes, NeSL’s DDE is can be integrated the banks LMS.
The documents executed through DDE are downloaded immediately after the process is completed on the user’s system.
This limitation is due to the non-provision of article codes by the respective State Governments to NeSL for digital stamping. You are advised to share the specific requirements with your NeSL RM, so they can take it up with the appropriate State authority.
The validity of a digital stamp paper (also known as e-stamp paper) is generally six months from the date of purchase, similar to traditional stamp papers. However, this validity period can be subject to specific rules and regulations set by individual state authorities
When parties located in different states (e.g., New Delhi and Mumbai) digitally sign a document, the selection of the state for e-stamping and the applicable stamp duty amount is determined by the DDE user. The NeSL e-Stamping platform acts solely as a facilitator for the e-stamping process and does not influence or decide the choice of state or the stamp duty applicable.
NeSL e-BG model supports issuance of e-BG within India. Any scheduled commercial bank including foreign banks operating in India can issue e-BG once onboarded to NeSL e-BG platform. Such e-BG issued through NeSL by a bank in India could be backed by a cross-border guarantee issued by an overseas bank (applicant’s country) in favour of the bank in India. NeSL e-BG process does not cover the cross-border inter-bank leg of the guarantee.
UIN is a unique identification number of an entity as provided under the Regulations. PAN where available serves as the UIN. Where PAN is not available, NeSL allots the UIN. We have noted your suggestion and will consider when we revise our e-BG API.
NeSL e-BG model does not determine or restrict the validity of an e-BG. The validity period is shared by the bank in the DDE API request to NeSL and is stored in NeSL. The validity period is decided by the issuing bank as per the request of the applicant and based on prevalent law and practice.
GeM Registered applicant/bidder can login to GeM portal and initiate request for bid. GeM will generate a challan that will have information about the beneficiary and e-BG (amount, expiry, claim expiry date etc.). Currently GeM has enabled beneficiaries to use a Central GeM UIN (Unique Identification Number) to enable access of e-BG only through GeM portal. Beneficiaries desirous of using their own UIN/PAN are planned to be enabled at a later phase by GeM. Applicant will have to submit the challan to the e-BG issuing bank, post which bank will trigger the e-BG issuance request to NeSL. Upon executing the issuance, NeSL will share the e-BG information (meta-data and document) to GeM which GeM makes available to the relevant applicant for verification during bidding process.
The API is developed, owned and managed by NeSL only
Once the API request for e-BG is received by NeSL from the issuing bank, the digital stamp is procured instantly through the SHCIL gateway or directly from the GRAS system, depending on the State. The stamped e-BG document is immediately made available to the issuing bank for digital signature. Further processing time is dependent of digital signing process by the bank official(s). For banks opting for straight through signing process, e-BG issuance process gets completed immediately along with a notification email to beneficiary. This entire cycle does not take more than 1-2 minutes.
Upon receiving notification from NeSL, beneficiary can login to NeSL and access and download the e-BG as issued by the bank. e-BGs issued across banks are made available to the beneficiary under single login.
NeSL e-BG model is agnostic to the BG template used and the e-BG process does not impose any standardized format for the BG document. Beneficiaries and banks can continue to use their own BG formats.
NeSL has introduced a variant process of e-BG called Hybrid e-BG (He-BG) wherein the original bank guarantee in paper form will continue to remain with the beneficiary till it get completely extinguished through invocation/cancellation/closure. In this variant, the subsequent events like amendment/renewal can be created digitally through NeSL e-BG platform. Beneficiary, by way of a circular or through any other medium of communication can instruct their applicant/vendors to carry out subsequent amendment/renewal through NeSL e-BG route for such legacy BGs.
Upon registration of the entity and creation of a user, multiple users within the entity can be created. At present, all the registered users can access/view and raise requests for an e-BG pertaining to their organization.
Renewals can be requested electronically through NeSL by the beneficiary, which are then notified to the issuing bank for action. NeSL maintains audit trail pertaining to such requests and can provide on request.
e-BG can ONLY be accessed by the authorised registered parties linked to the e-BG which cover the issuing bank, applicant and the beneficiary.
The beneficiary has to raise a cancellation request on the platform and return of original BG is not relevant in context of e-BG.
The fee for e-BGs is part of our fee structure published on our website
NeSL does not charge the applicant but only the bank. For any charges bank may levy on the applicant, invoicing to applicant with GST is the responsibility of the bank.
e-BG service is API driven integration with bank system and NeSL. There is no specific requirement for PC/Laptop. In normal course, the bank user will operate on the bank’s internal Trade Finance platform. On authorisation of transaction on the TF platform, bank system is expected to submit the API request in an automated manner to NeSL without any manual intervention. Where the bank officer signs on NeSL platform, the officer is expected to use a standard browser from any PC/Laptop having internet connectivity. Bank may also choose to use its own internal infrastructure for signing.
The facility is available 24x7 including non-working days (except any brief maintenance time which are notified by NeSL).
Generally, we have not faced any major issues, however in case of occasional technical issuesNeSL have dedicated resources to resolve the issues faced by the stakeholders in time bound manner.
NeSL repository is available to the banks in unrestricted manner. Any e-BG issued through NeSL is available in IU portal for a period of 8 years after the closure of the e-BG.
NeSL raises a monthly invoice to bank for issuance, amendment and renewal transactions
NeSL facilitates stakeholders of e-BG to generate report wherein all the details of the e-BG along with the historical events are captured
This may happen in the longer run once there is greater awareness, and all stakeholders are familiar with e-BG. We have taken this up with the IBA and also with other government agencies.
NeSL does not change the status on its own of the e-BG after expiry or claim expiry. The status of the e-BG is changed only when bank updates the latest e-BG position to NeSL. Bank needs to update NeSL with the e-BG status as ‘closed’ upon expiry. Only upon bank confirmation NeSL will update the status of e-BG as closed in the portal and notify the stakeholders of e-BG.
Beneficiary entity, upon registration, can create multiple users as per its needs. There is no restriction in creating multiple users in NeSL portal.
A legal entity is registered and identified in NeSL by its PAN as the UIN (Unique Identification Number). Upon registration under the PAN/UIN, beneficiary can create multiple users as per its requirement. e-BGs are issued against the PAN of the entity and can be accessed by any of its users. e-BGs can be linked to Business Unit (BU) code to identify the department/section/offices within an organization. For this purpose, beneficiary needs to advise its own BU code to the applicant so that the same may be filled in by the issuing bank at the time of e-BG issuance through NeSL. Beneficiary can make use of BU code to filter out e-BGs information pertaining to a specific department/section. Beneficiaries who avail API based NeAS integration with its internal system, can automatically link e-BG to the department or even to a specific contract/ tender in its internal system (through the use of Contract Ref Number field) for allowing access to relevant users without the need to login to NeSL portal.
Invocation request can be submitted electronically by beneficiary under its digital signature for transmission to the issuing bank. There is a provision wherein user can upload supporting documents along with invocation advice if necessary. However, supporting document upload is optional. There is no specific requirement to upload invoice or PO unless this is mandated as per conditions in the e-BG or asked by the bank.
e-BG is stored in NeSL only after it is issued and confirmed by the issuing bank. The NeSL DDE platform is API driven and fully secured with access to authorized users only. Verification of the e-BG on the NeSL portal will help beneficiaries to avoid the inconvenience and delays associated with verification with the issuing bank. The process of verification of e-BG is published on our website.
The NeSL e-BG model provides direct intimation and access to the beneficiary. Hence in this model, there is no requirement of SFMS confirmation for verification purpose if the e-BG is downloaded from NeSL e-BG portal. However, banks may obtain suitable clarification from relevant authorities regarding continuation of SFMS for e-BGs.
The time to take action depends on the bank’s internal processes. NeSL role is to deliver beneficiary’s request to the bank in a prompt manner. NeSL forwards the request either through email or through API as per the bank’s processes. NeSL platform facilitates raising an electronic request by beneficiary and sharing such request with the issuing bank for their action. Banks are expected to take action on such requests without delay. However, NeSL cannot impose or enforce any timebound action at bank’s end. NeSL portal maintains and shares the audit trail of the request in a transparent manner with the beneficiary, including date & time of the request raised, delivery acknowledgement from the bank, bank action on the request etc.
Business Unit Code (BU) is not necessarily used by all beneficiaries; hence it is an optional field. Beneficiaries which operate through a centralized location may not use BU code. Hence NeSL cannot enforce BU code as mandatory across all beneficiaries. Making it mandatory for any specific beneficiary is also not practicable.
There is no time limit that NeSL can enforce on bank/s to action on the beneficiary request for payment (e.g. invocation, partial invocation etc.). However, bank/s are duty bound to act promptly on the request as per RBI directions and the obligations under the guarantee contract. NeSL portal maintains and share the audit trail of the request such as date & time of the request raised, delivery acknowledgement to the bank, bank action on the request etc. with the beneficiary through IU Portal/API. In case of inordinate delays, beneficiaries can take up with appropriate authority along with supporting details, which can be provided by NeSL.
e-BG process through NeSL is BG format agnostic. At present, the beneficiary can continue with their existing BG format and instruct the applicant accordingly to convey to the issuing bank. However, in case the BG is issued in a different format that is found unacceptable, beneficiary can raise online request to the issuing bank for amendment of the e-BG. The applicant also gets notified by NeSL. The applicant can directly approach the issuing bank and initiate the request for amendment.
NeSL triggers advance alert on a daily basis for all e-BGs having expiry date in next 15 days. Such notification is sent through email.
Upon issuance of e-BG, beneficiary has option to raise request (e.g. amendment etc.) through NeSL for enhancing the value of the BG. Action on the request is dependent on the issuing bank, subject to consent from the applicant and fulfilment of requisite credit terms. There is no change in this respect in e-BG process vis-a-vis traditional paper BGs.
Yes, like other types of requests, beneficiary can raise a request for renewal through NeSL, which serves as an endorsement of renewal from beneficiary side. The applicant is also simultaneously notified by NeSL of such request from the beneficiary. However, for renewal action bank will still require a consent of applicant, apart from the applicant meeting the requisite credit terms.
We have already taken up this requirement where subsequent request will be allowed to be raised even though there is existing request pending. We will communicate to you once this feature is made available in production.
Banks may still require an endorsement from beneficiary before releasing an unused BG. The issue of delay in release of BG due to non-responsive beneficiary is not a problem arising on account of e-BG. At present both the modes of request (traditional offline method as well as electronic mode via NeSL) are available. Applicant can continue with the existing process of requesting to the bank in parallel to the electronic method except in certain banks who have decided to entertain only electronic mode of request.
Email pertaining to e-BG is triggered to the registered email ID of the entity and also to email ID given in the API request by bank as per details provided by the beneficiary. This is only to serve as an alert notification. The e-BGs in favour of the beneficiary (denoted by the PAN/UIN of beneficiary) are always accessible to all the registered users of the entity upon login to NeSL portal or fetched through API integration. Incorrect or obsolete email ID does not create any hindrance to access e-BG by other users through NeSL portal login or through API. In case the entity email ID pertains to an individual who has left the organization, beneficiary has the option to modify the same and update with the new one. It is recommended that the entity email ID is a role-based one (e.g. group email not specific to only one person) to which relevant officials can be linked internally.
NeSL have taken a note of the suggestions. These matters were deliberated in the past as well. Considering the practical issues, we will further discuss with the bank for feasibility of solution.
Beneficiary has option to raise request as ‘extend or pay’ wherein the instruction is given to the e-BG issuing bank to either extend the period of the e-BG or invoke the entire e-BG amount.
NeSL will be shortly introducing a feature wherein request raised erroneously can be withdrawn by the beneficiary. The history of the withdrawn request will be available in the system. We will update you once the feature is ready to go live.
Yes, beneficiary has the option to raise request of ‘extend or pay’ wherein the instruction is given to the e-BG issuing bank to either extend the period of the e-BG or invoke the entire e-BG amount.
If the e-BG has passed the ‘claim expiry period’ then no invocation request will be allowed by the beneficiary through NeSL.
NeSL do not update the status of e-BG on expiry automatically. Bank will have renew the e-BG and notify NeSL through the DDE e-BG API with the latest status post which NeSL will update the status in its portal and notify the stakeholders of e-BG
Where beneficiary submits offline request (outside NeSL platform) to cancel the e-BG, bank is required to update NeSL with the latest position after cancelling the e-BG in its internal banking system. Only upon bank confirmation, NeSL will update the status of e-BG as cancelled in the portal and notify the stakeholders of e-BG.
In both cancellation and closure, the effect given by the bank is the same i.e. e-BG is marked as closed and it stands extinguished.
PAN/UIN of the parties to the e-BG (i.e. beneficiary, applicant and bank) is mandatory for e-BG issuance through the NeSL e-BG API.
It is not mandatory that beneficiary should be registered in NeSL before issuance of the e-BG. They will be notified through email on issuance of e-BG. The applicant can also forward a digitally signed copy of the e-BG. However, to access the e-BG and other features of the e-BG process, registration is necessary.
The system validates all the information submitted with the basic structure of the information of the field (syntax validation) e.g., mobile has to be of 10 digits, email has to be of xxx@xxxx format etc. In case the validation fails, system rejects the request and gives the API response with appropriate error code to the bank. In case incorrect information is detected after issuance of an e-BG, bank can cancel the e-BG and issue a fresh one. Alternatively, bank can take a route of the amendment.
Beneficiary can issue a digitally signed discharge instruction by raising a request for cancellation through NeSL portal. Beneficiary can also upload a supporting document e.g. copy of signed letter or any other supporting document while raising the electronic request. At present, it is not mandatory that such discharge letter has to be raised electronically through NeSL portal. It is up to the banks whether to accept parallel process of off-line discharge letters in traditional mode. The issue of non-receipt or delay in beneficiary providing discharge instruction is not specific to e-BG but a common existing issue even in traditional process.
Any beneficiary who has not implemented API needs to log in to NeSL to view its e-BGs and also to raise any request e.g. cancellation electronically along with optional upload of any relevant document. NeSL will share the digitally signed request pdf and the uploaded document with the bank
The NeSL e-BG model provides direct intimation and access to the beneficiary. Hence in this model, there is no requirement from NeSL side for SFMS confirmation. However, SFMS requirement exists due to past circulars from IBA and until there is change in such requirements from the concerned authorities, banks may need to continue the practice of SFMS even for e-BGs. Banks may obtain suitable clarifications from IBA/ concerned authorities.
Even if the beneficiary submits a physical request offline (outside NeSL system), the e-BG issuing bank is required to update NeSL with the latest status after closing the request in its internal records. NeSL will record the latest position of the e-BG in its Portal and will accordingly notify the stakeholders of e-BG.
Yes, an Indian bank (e-BG issuing bank) backed by a counter guarantee from foreign bank can issue an e-BG favouring an Indian beneficiary through NeSL. For detailed clarification refer response # 22.
Yes, an e-BG can be issued by an Indian bank (e-BG issuing bank) backed by a counter guarantee by another Indian bank (applicant’s bank) through NeSL e-BG platform.
Yes, an Indian bank (e-BG issuing bank) backed by a counter guarantee from foreign bank can issue a e-BG favouring the Indian beneficiary through NeSL. Since the foreign applicant will not be having a UIN (e.g. PAN), NeSL permits a fixed UIN for all such foreign applicants. Bank can pass the UIN as part of the API request against the name of the foreign applicant. We will communicate this approach shortly with all the bank once it is made available in the system
In general, our understanding is that in a stamped contract, the effective date (here e-BG issuance date) can be earlier than the execution date (signing date) or even the stamping date. The signing however cannot be before the stamping date. We need to discuss and understand why this scenario is seen to be an issue for the beneficiary. We also request you to elaborate on the technical issue encountered during signing which will help us to investigate and resolve the same.
Stamping is state subject and state specific. It may vary from state to state. Bank will continue to follow their existing process to determine the state jurisdiction, applicable article code and stamp duty amount and share the same with NeSL in the DDE e-BG API request. However, for certain states like Maharashtra, West Bengal, Madhya Pradesh, Kerala etc. A stamp duty calculator is provided by the states through which NeSL validates the value of stamp duty.
There is no provision of third party in stamp certificate. The format of stamp certificate is determined by the State (SHCIL/GRAS). For SHCIL states the stamp certificate is common however for GRAS states the respective IGR determines the format. Bank needs to specify who should be the first party and second party.
Stamping is state subject and state specific. It may vary from state to state. Bank will continue to follow their existing process to determine the stamp duty and share the same with NeSL in the DDE e-BG API request. However, for certain states like Maharashtra, West Bengal, Madhya Pradesh, Kerala etc. there is stamp duty calculator provided by the states through which NeSL validates the amount.
Refer response #1. In majority of the states, the stamp duty applicable is a flat amount, irrespective of e-BG value.
Further to response under # 1, the applicable state for stamp duty purpose is to be interpreted as per the provisions of the prevailing stamp duty laws of the country. The issuing bank needs to take a view on this as per its legal guidance and/or as per specific requirements conveyed by beneficiary, if any.
Stock Holding Corporation of India Limited (SHCIL) is the only Central Record Keeping Agency (CRA) appointed to issue digital stamp certificate across 23 states (SHCIL states). The states where SHCIL does not operate, have their own system. These are often referred to as GRAS (Government Receipt & Accounting System) states e.g. Maharashtra, West Bengal, Madhya Pradesh, Kerala etc. NeSL has integration with both SHCIL and GRAS states and have the ability to procure the e-Stamp certificate from any state as requested by the bank.
The counter guarantee involves 2 step process
(In case of a foreign vendor and Indian beneficiary, the bank guarantee is typically handled in two distinct legs):
The beneficiary has to raise a cancellation request on the platform and return of original BG is not relevant in context of e-BG. We need to discuss the specific use case of unused e-BG further with the banks/ in IBA forum. We also need to understand the existing practice followed for closure/release i.e. whether return of original paper BG is considered sufficient without the need of any explicit consent/ discharge letter from the beneficiary. We will set up a separate discussion with your bank on this topic.
e-BG service is an API driven integration. Bank being the initiator of the e-BG request will get the final executed document along with the meta data as a response upon completing the eStamp and eSign process. Hence the bank user can access the e-BG through internal system of the bank. However, if the bank official wants to login to NeSL e-BG portal, there is no restriction on the number of users who can be registered with NeSL. Stakeholder of e-BG can create multiple users to access and download the e-BG from IU portal. With respect to bank, the need to access IU portal will arise during exceptional situation where bank is not able to receive e-BG information through API. To handle such scenario, bank can create few users on IU portal
NeSL is India’s first Information Utility and is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).
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