The Bihar government has fully digitised the bank guarantee process to make it simpler, faster and more transparent. The Prohibition, Excise and Registration Department has implemented an electronic bank guarantee (e-BG) system, enabling digital payment of e-stamp fees for documents such as agreements, custom bonds, loan agreements and powers of attorney. The facility will be available round the clock.
For the rollout of the e-bank guarantee system, the department has signed an agreement with the central government agency National E-Governance Services Ltd. (NeSL).
Until now, bank guarantees were issued in physical form by scheduled commercial banks in the state. With the new system, bank guarantees will be generated and processed digitally.
Under the e-BG framework, electronic bank guarantees will also be accepted as performance security in tenders, doing away with paperwork and the submission of physical documents.
The system will provide real-time access to transaction-related details, while each document will carry a unique identification number to prevent duplication and ensure greater security.