GeM signs MoU with two banks for cashless payment system

at 11:18 am

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

GeM, Indian Bank and Canara Bank have entered into 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), Earnest Money Deposit (EMD) and Payment Gateway to the registered users on the portal, an official statement said.

The MOU with Indian Bank was signed by S. Suresh Kumar, GeM Additional CEO and M Karthikeyan, GM of Indian Bank along with Deepesh Gehlot, GeM Director and Narendra Kumar, AGM of Indian Bank in the presence of Talleen Kumar, GeM CEO.

The MOU with Canara Bank was signed by S. Suresh Kumar, GeM Additional CEO and R P Jaiswal, DGM of Canara Bank along with Shantanu Kumar Mazumdar, GM of Canara Bank.

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 and rating of a seller on GeM.

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

Online integration for payments and various banking services is one of the priorities for GeM. GeM has already signed MoU with 18 scheduled commercial public sector and private banks in this regard.