New Delhi: To promote cashless transactions, Government e-Marketplace (GeM) has signed the memorandum of understanding (MoU) with Indian Bank and Canara Bank on October 31. Earlier GeM had signed MoU with 18 scheduled commercial public sector and private banks including an MoU with Union Bank of India (UBI) on October 11 for the same purpose.
As per MoU, signed with Indian Bank and Canara Bank, GeM will facilitate cashless, paperless and transparent payment system on its portal which would create an efficient procurement system for government entities. Through this partnership, both the banks will be able to offer an array 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.
The MoU with Indian Bank was signed by GeM's Additional CEO S Suresh Kumar and Indian Bank's General Manager M Karthikeyan along with GeM's Director Deepesh Gehlot and Indian Bank's Assistant General Manager in the presence of GeM's CEO Talleen Kumar.
The MoU with Canara Bank was signed by GeM's Additional CEO S Suresh Kumar and Canara Bank's Deputy General Manager RP Jaiswal along with Canara Bank's General Manager Shantanu Kumar Mazumdar.
"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.
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.
Online integration for payments and various banking services is one of the priorities for GeM.