GeM, Federal Bank join hands for cashless payment system

at 1:30 pm

New Delhi (NVI): The Government e-Marketplace (GeM), a one stop portal to facilitate online procurement of common use Goods & Services, has signed a Memorandum of Understanding (MoU) with Federal Bank to facilitate a cashless, paperless and transparent payment system on the portal create an efficient procurement system for government entities.

Both GeM and Federal Bank have entered in this MoU with the objective  to offer a number of services including transfer of funds through GeM Pool Accounts (GPA), advising of Performance Bank Guarantees (e-PBG) and Earnest Money Deposit (EMD) to the registered users on the portal, an official statement said.

The MoU was signed by S. Suresh Kumar, GeM Additional CEO and R. Vardharajan, Country Head – Government Business, Federal Bank along with Deepesh Gehlot, GeM Director and Hemant Mahindru, State Business Head – Government Business, Federal Bank in the presence of Talleen Kumar, GeM CEO.

GeM is also working with Banks, TReDs, and SIDBI to provide bill discounting and financing of working capital where the cost of capital is linked to the performance & rating of a seller on GeM.

This will help the sellers in general & the MSMEs in particular to access easy credit and do better business with the government. In addition, GeM is contemplating the creation of EMD pool account for making it easy for sellers to comply with the EMD requirements while responding to bids.