GeM signs MoU with Federal Bank to offer fund transfer services

The MoU will facilitate a cashless, paperless and transparent payment system on the portal and would create an efficient procurement system for government entities.

The Government e-Marketplace (GeM) today signed a memorandum of understanding (MoU) with Federal Bank 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. The MoU will facilitate a cashless, paperless and transparent payment system on the portal and would create an efficient procurement system for government entities.

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

The 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 an EMD pool account for making it easy for sellers to comply with the EMD requirements while responding to bids.

(With Inputs from PIB)