Monday, September 26, 2022

GeM partners with Central Bank for payment related services

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New Delhi: Government e-Marketplace (GeM) has signed a Memorandum of Understanding (MoU) with Central Bank of India for payment-related services. As per the MoU, Central Bank of India will offer an array of services including transfer of funds through GeM Pool Accounts (GPA), advising of electronic Performance Bank guarantees (e-PBG) and earnest money deposit (EMD) to the registered users on the portal.

The MoU was signed by GEM’s CFO Rajeev Kandpal and Central Bank of India’s Field Manager AK Mishra in the presence of GeM’s CEO Talleen Kumar.

Integration for payments and various banking services is one of the priorities for GeM towards the goal of paperless, contactless and cashless system. GeM has already signed MoU with 19 public sector and private banks to enable this.

Other services of GeM

“GeM is also working with Banks, Trade Receivable e-Discounting System (TReDs) and Small Industries Development Bank of India (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 Ministry of Micro, Small and Medium Enterprises (MSMEs), in particular, to access easy credit and do better business with the government. GeM is also planning the creation of EMD pool account for making it easy for sellers to comply with the EMD requirements while responding to bids,” a press release from Ministry of Commerce & Industry said.

Government e-Marketplace

GeM is an initiative of the Government of India which offers a one-stop platform for facilitating online procurement of common use goods and services required by various government departments, organisations and PSUs. GeM provides tools for direct purchase, bidding and reverse auction for ensuring transparent and efficient procurement.

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