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MCC takes an important step towards transparency and use of technology to improve administrative procedures

PUNJAB NEWS EXPRESS | July 08, 2023 10:27 AM

CHANDIGARH: In an attempt to eliminate the possibility of fraud in bank guarantee, the Municipal Corporation Chandigarh has implemented the platform of acceptance of Electronic Performance Bank Guarantee from vendors or contractors and received its 1st EPBG today, first time in the history of MCC.

While speaking about the initiative, Ms. Anindita Mitra, IAS, Commissioner, Municipal Corporation Chandigarh said that in this regard, the Corporation has issued office order to receive the preference bank guarantee only in E-PBG format 1st July 2023 onwards from vendors/contractor. She said that Corporation shall receive the SWIFT bank guarantee confirmation on its platform to recognize or accept the bank Guarantee.

She said now Vendor or Contractor needs to submit their bank guarantee which needs to be created on SFMS (structural financial messaging system) platform of issuer banker. Therefore, Municipal Corporation Chandigarh is in positing to eliminate manual intervention for verifying the bank guarantee from issuer banker. This SFMS platform is also regulated by RBI (Reserve Bank of India), she said.

The Commissioner further said that it is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. SFMS can be used for secure communication within the bank and between banks for enhanced security and reduces the possibility of fraud.

She said the Corporation has received its 1st E-PBG on 7th July 2023 on 11 am though its platform via SWFS platform form issuer bank of SBI located in the state of Gujarat.

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