The Monetary Authority of Singapore (MAS) and the Ministry of Finance (MOF) have introduced eGuarantee@Gov, an easy and secure digital approach allowing people and businesses to submit a banker's guarantee or insurance bond (collectively, "guarantee") to governmental organizations within a day.
The plan was created in collaboration with the General Insurance Association of Singapore and the Association of Banks in Singapore (ABS) (GIA).
In order to fulfill their contractual or licensing requirements, firms and individuals won't need to request for a paper guarantee from a financial institution (FI), wait for it to be available, and then send the guarantee to the government agency. Instead, they can use eGuarantee@Gov. Instead, companies and individuals can submit an eGuarantee application to 17 government entities directly from the websites or emails of the more than 20 participating FIs. By the end of 2023, more FIs and organizations are expected to join eGuarantee@Gov.
streamlined method
This more organized and straightforward approach will be advantageous to FIs and government organizations as well. Through the use of standardized language, eGuarantee@Gov does not require legal review of each assurance. The Networked Trade Platform of Singapore Customs is used to securely send the eGuarantees (NTP).
"This is a gain for both financial institutions and their consumers," said Mr. Marcus Lim, assistant managing director (Banking and Insurance), MAS. Greater processing efficiency for guarantees is made possible by eGuarantee@Gov, which also lowers the operational risks connected to manual paper-based operations.
"Banks and our customers will benefit from more streamlined operations and increased efficiency owing to eGuarantee@Gov," stated Mr. Wee Ee Cheong, chairman of ABS and CEO of United Overseas Bank. More importantly, we anticipate that as we transition to a greener and more sustainable economy, more parties will accept digital guarantees.
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