New Delhi: GAIL (India) Limited and Swift India announced that GAIL has gone live with Axis Bank for digitizing Bank Guarantees. This makes GAIL the first Indian corporate to adopt the solution that will enable secure, transparent and seamless transactions.
On becoming the first Indian corporate to implement this end-to-end facility, GAIL’s Chairman & Managing Director (CMD) Sandeep Kumar Gupta said, “Our vision is to empower our employees to be focussed on business, provide value addition for our customers, and adopt technology to ensure processes that protect our systems from fraud, with no manual intervention. GAIL constantly strives to ensure that capabilities built are with a long-term vision.”
Speaking on the occasion, GAIL’s Director (Finance) RK Jain said, “The entire end-to-end process of digitisation of Bank Guarantee and Stand by Letter of Credit (SBLC), from issuance till it’s invocation, will be a seamless process without any manual intervention.”
Axis Bank’s President & Head (Wholesale Banking Products) Vivek Gupta said, “Axis Bank has always been at the forefront in leading digitisation initiatives in transaction banking for our wholesale and commercial banking clients to significantly enhance their customer experience. We are pleased to launch the industry leading, global trade ISO standards-based e-BG proposition for our valued client GAIL, in close partnership with SWIFT India. Through this solution, we will help GAIL in eliminating paper associated with Guarantees, in seamless track & trace of such guarantees, in reduced fraud and in speeding up transaction turnaround times.”
Axis Bank, working along with the team at GAIL and SWIFT is the 1st bank which managed to design, develop & deliver the complete paperless solution. The delivery includes the complete life cycle of BG including issuance, advising, amendment and invocation.
Swift India’s CEO Kiran Shetty said, “We are delighted that GAIL & Axis Bank have implemented digital e-Bank Guarantee solution, by using the globally established trade ISO standards, for the 1st time in India, thru us. With GAIL’s commitment towards digitisation, this solution will eliminate the need to use paper – a great step towards ESG. More importantly, it will enable straight thru processing that will enhance security and speed, leading to ease of doing business and accelerating economic outcomes. We congratulate GAIL and Axis Bank in pioneering this journey of paperless trade finance with global standards in India.”
e-Bank Guarantees by Swift India entails multiple benefits including improved processing with the corporates, multi-bank and multi-corporate solution, e-stamping, and fraud reduction by using the GSTN network for invoice discounting. This solution allows instruments including issuance, amendments, invocation, and release of the bank guarantee.
Through eBGs Swift India is not only digitizing the finance ecosystem but is also pivotal in reducing frauds and inducing operational risk mitigation, decreasing the turnaround time of the transaction, eliminating the cost to the environment through physical paper needs and easing business operations. Swift India will continue to work with other corporates in the country to support them through its digital solutions that will help them realise their trade digitisation goals.
GAIL is India’s leading natural gas company while Swift India is a joint venture between leading 11 banks in India and SWIFT SC, the global messaging service provider.
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