Slide deck of presentation on "Information utility- An Indian Innovation" by Mr. Debajyoti Ray Chaudhari at SPM Summit India 2023

1. An Information Utility Regulated by IBBI
ISO/IEC 27001:2013 CERTIFIED
Information Utility-
An Indian Innovation

2. NeSL Shareholding
Banks
5%
5%
5%
1.6%
2%
10%
10%
14%
9.9%
9.5%
6%
5%
Public Sector
Financial Entities
Incorporated
65%
2016
5%
2%
6%
4%
Insurance Companies,
Depository
16
12 3 1
Shareholders
=
Banks Insurance
Companies
Depository
+ +

3. About Information Utility
• The BLRC recognizes that asymmetry of information is a critical
barrier to fair negotiations, or ensuring swiftness of the process. The
Committee recommends the creation of a regulated information
utility that will make available all relevant information to all
stakeholders in resolving insolvency and bankruptcy.
• The application of the creditor should contain evidence of default on
payments by the debtor that is filed in a registered information
utility.
Information Utility was envisaged as National level debt repository with
evidence of default of payments and disseminates alerts to lenders.
It is unique concept, first in India and entire universe.

4. Information Utility - Synopsis
ü Registration of Entities, Identification of Users
ü Scope covers both Financial and Operational credit
ü Financial Information includes
o Record of Debt
o Record of Securities
o Record of Default
ü Supporting documents to debt
ü Digitally signed submission
ü Authentication by all parties to debt
ü Frequency: monthly submission of data, and default submission within 7 days
ü Inter-operability of IUs

5. Regulatory Environment
Under:
Insolvency and Bankruptcy Code, 2016
Regulated by:
Insolvency and Bankruptcy Board of India
Compliances:
IBBI, Information Utility Regulations, 2017
Guided by:
IBBI, IU Technical Standards

6. About National e-Governance Services Ltd
ü NeSL is India’s only Information Utility and is Registered with the
Insolvency & Bankruptcy Board of India (IBBI) under the provisions of
the Insolvency & Bankruptcy Code 2016 (IBC)
ü Covered under Sections 209-215, Chapter V of the IBC
ü Regulated under the Insolvency and Bankruptcy (Information Utilities)
Regulations 2017
ü Core services of IU as defined under Section 3 (9) of the Code
ü Section 215 (2) of the code mandates the financial creditors to submit
financial information to the IU. More than 400 lenders are registered in
IU for submission of information.

7. Information Utility - Schematic workflow
Bank filing loan
details or Supplier
files supply details
Corporate / MSME
/ Individual
As Borrower or
Buyer
Provides loan or goods / services invoice
Uploads Form C/documents
for financial
or Operational Credit
Send authentication
request
Authentication with or without disputes
Inform Submitter about
authentication Status
Financial or Operational Creditor as submitter
Two way communication platform
IRP / RP /
Liquidator
IBBI / AA
Information Access
1
2 3
4
5
6

8. NeSL - Reports and Alerts
Information Utility
Credit Monitoring Reports
Credit Facility Report (CFR)
Debt Query Report (DQR)
Record of Default (ROD)
Default Alerts
Application Alerts(WIP)
Public Announcements Alerts
Administrative Reports
Registration Status
Authentication Status
Annual Report

9. External Interfaces
Information
Utility
Process Related
Net Core
ACL Mobile
Email
CDAC
ACL Mobile
SMS
Authentication Related
Income Tax Dept PAN Verification
nCODE Digital Signature
Regulatory Related
NCLT eFilling
Ministry of MSME Samadhaan
MCA CIN and DIN
Submission Related
Document API DDE
CDAC, Protean (NSDL) eSign
SHCIL / GRAS eStamp
Ingnico (Techprocess)
Payment
Gateway
IBBA PA Alerts

10. Data Summary of IU
Analysis of all records uploaded in IU as on Dec 2022
Debtor
Category
Financial Debt Operational Debt Total
Count of
Debt Records
Outstanding Amt
(Rs Crore)
Count of
Debt Records
Outstanding Amt
(Rs Crore)
Count of
Debt Records
Outstanding Amt
(Rs Crore)
Company 21,30,104 1,58,85,947 2,99,262 46,956 24,29,366 1,59,32,903
Other Business 40,67,368 16,27,196 6,929 2,592 40,74,297 16,29,787
Individual 1,61,96,233 14,17,356 245 375 1,61,96,478 14,17,731
Total 2,23,93,705 1,89,30,499 3,06,436 49,923 2,27,00,141 1,89,80,422
Analysis of Default records uploaded in IU as on Dec 2022
Debtor
Category
Financial Debt Operational Debt Total
Count of
Default Debt
Records
Default Amt
(Rs Crore)
Count of
Default Debt
Records
Default Amt
(Rs Crore)
Count of
Default Debt
Records
Default Amt
(Rs Crore)
Company 79,247 11,94,702 1,197 2,450 80,444 11,97,152
Other Business 1,95,458 75,749 118 49 1,95,576 65,797
Individual 4,60,758 16,748 3 63 4,60,761 16,811
Total 7,35,463 12,87,199 1,318 2,561 7,36,781 12,89,760
• Total number of unique debtors across all segments is 1,43,31,466.

11. Data Summary of IU (Cont) - Capacity
Analysis of records uploaded in IU as on January 2023
Debt Type
Unique Debt Records All Submissions
Count of Records Remarks Count of Records Remarks
Financial Debt 3,35,16,140
• Active-71%
• Closed-23%
• Erroneous-6%
17,05,69,284
• Active- 92%
• Closed-4%
• Erroneous-3%
Operational Debt 6,58,555
• Active-47%
• Closed-53%
• Erroneous-0%
14,82,734
• Active- 76%
• Closed-24%
• Erroneous-0%
Total 3,41,74,695
• Active-71%
• Closed-23%
• Erroneous-6%
17,20,52,018
• Active-92%
• Closed-4.5%
• Erroneous-3.5%

12. NeSL IU - Robust Ecosystem
üProcessing and storing debt information submitted by all lenders (Banks, NBFCs, Debenture trustees,
etc.)
üSent 10.90 crore of emails and 1.52 crore SMSs for inviting stakeholders (borrower, co-borrower,
guarantor, etc.) to register and authenticate the information and reminders thereof.
o Max email in one day - 14 Lac plus on 24 Nov 2022
üMaintaining history of delivery of every communication - email sent, email bounced, email delivered,
email opened etc.
ü14.42 Lacs alerts to lenders (default alert, Public announcement alerts etc)
üGenerating micro and macro reports for regulator, researchers, information submitters, etc.
üIntegration with services providers like SMS and email gateway, payment gateway, eSIGN, PAN
verification, etc.

14. E-SIGN
Digital Stamp
(Paperless)
Secure
Storage
Quick (24 X7) Cost Saving
Efficient
ü NeSL has introduced fully automated Digital Document Execution (DDE) platform under the
guidance of MoF and IBBI.
ü DDE - a fully automated contract execution platform with paperless e-stamp & electronic
signature (e-Sign).
ü e-Sign includes Aadhar based (OTP/Biometric) and dongle-based DSC
ü To fulfil bankers ease of doing business, we are extremely grateful to the State Governments
for permitting paperless e-Stamping for the financial institutions under NeSL DDE platform.
Currently 23 states amended State Stamp Act to issue digital Stamp.

15. NeSL DDE Workflow
1) Customer visit NBFC /
Bank and apply for
loan/credit facility
2) After loan sanction, bank push
loan related data including
agreement PDF (base 64) to NeSL
DDE for execution
3) NeSL DDE receives
loan details from
bank/NBFC via API
5) NeSL receive e-Stamp
certificate and embeds it
on the pages of
agreement.
Document submission
to NeSL IU
7) Complete
Document will share
with bank/NBFC
Customer
6) Applicant verifies
the content (as a
single PDF including
e-stamp certificate)
And then proceed
with e-Sign. Options
of DSC (dongle),
Aadhaar E-sign –
Biometric or OTP
4) NeSL invites (email and
SMS) & verifies applicant (via
OTP) for preview of document
followed by API request to E-
Stamp Authority (SHCIL/ IGR)

16. NeSL DDE: Features
Comprehensive process that integrates with
lenders’ existing online loan system through APIs
Paperless
Online & real-time generation of stamp duty certificate
inscribed with a unique stamp duty number from SHCIL/GRAS
Digital E-Stamping
Digital Sign/E-
Sign
Aadhar based e-sign services for execution of various loan
documents. Option to validate Name (in %) , YOB , Gender
before affixing e-Sign (on request from submitter)
Electronic
Contract
Digital Contract by merging of text document
along with stamp duty certificate.
Document Storage Document is stored along with the hash for future
validation
:
:
:
:

17. NeSL eBG
• Electronic Bank Guarantee (e-BG), initiated on CVC
recommendation, was launched in close
consultation with the Indian Banks' Association
(IBA).
• Substitute for paper-based bank guarantee which
can be e-stamped, e-signed, shared and retrieved
digitally.
• Will address many concerns such as better
monitoring with triggers for renewal, less risk of
forgery, faster procurement cycle and quicker
encashment of BG.

18. NeSL eBG workflow
Applicant/
Customer
1 BG initiation
BG
Issuing Bank
Beneficiary
Notification
+
e-BG Download
Digital Stamp
Certificate
SHCIL/ GRAS
States
3
2
5a
DDE API Request
e-BG
4
Notification
e-BG Repository
(eStamp and eSIGN)
5b
• User can login in NeSL platform download eBG documents
• History of eBG will be maintained in the NeSL platform like
BG issuance, subsequent amendments, renewals, invocation
or closure etc.

19. Key Features of eBG Through NeSL
ü Completely Digital
• Not just electronic stamping, the BG document itself is digital with digital signature
• Digital signed - tamper proof
• Eliminates pitfalls of paper-based process
• Flexibility in using any BG documentation template as practiced presently, no need to migrate to standardized template
across country
• Not only issuance, any amendment / invocation/closure also supported
• Quick issuance, savings for MSMEs – ease of doing business
• Beneficiary can raise request against the eBG for amendment, invocation, closure etc and track the status of same
ü Notification to beneficiary / customer from NeSL
• eBG downloadable from NeSL by beneficiary
• Banks free to follow regulatory requirements of SFMS msg notification at its end
ü NeSL as Central eBG repository
• Ease of verification
• Download eBGs details in a excel file
• API integration with their ERP system
• Integration with GEM portal and State’s Procurement portal (No need to login in NeSL platform to view eBG)
• Advance Alerts on BG expiry date and claim expiry date
ü Ease of stamp duty enforcement

20. Current Status
ü411 eBGs are issued in favour of 170 unique Beneficiaries worth of Rs 8.79 Billion.
Amendment on 37 eBG has been done by the Bank.
üFollowing Banks have launched eBG services
oHDFC Bank
oICICI Bank
oCanara Bank
oState Bank of India
oIndian Overseas Bank
oAxis Bank
üOther banks are at various stages of UAT process are Bank of Baroda, SIDBI, IDBI Bank,
IndusInd, Yes Bank, South Indian Bank, Indian Bank, IDFC First Bank etc.
üMany other banks like Punjab National Bank, Bank of India, Union Bank of India, Punjab
and Sind Bank, Kotak Bank, J&K Bank, Federal Bank etc. are at various stages of
discussion/ implementation.

21. DDE - Robust Ecosystem
üAPI based solution - integration with Banks, Services providers
ü24*7 Availability
üIntegration with external third parties (eSIGN, eSTAMP)
üMore than 14 lacs successful transactions
üDDE platform integrated with system of 23 states for procurement of
eStamp
ü28 entitles (23 Banks and 5 NBFCs) are live
üAround 22% transaction after business hours and non-working days

22. NeSL IU Services Regulated
Entity
Repository of
Authenticated
Debt
Record
of
Default
Alerts Digital
Document
Execution
eBG
Micro and
Macro Level
Reports

23. Thank You!!
Registered Office
Gresham Assurance House, 4th Floor, Sir P M Road, Fort, Mumbai 400 001. Phone: 022-6260 6666
Administrative Office:
5th Floor, “The Estate” Building, 121, Dickenson Road, Bengaluru – 560 042 Phone: 080-2558 0360
For more information visit https://nesl.co.in
An Information Utility Regulated by IBBI
ISO/IEC 27001:2013 CERTIFIED