GeM signs MoU with Central Bank of India for transfer of funds

The MOU was signed by Rajeev Kandpal, CFO, GeM and A.K. Mishra, Field General Manager, Central Bank of India in the presence of Talleen Kumar, CEO, GeM.

Government e-Marketplace (GeM)today signed MoU with the Central Bank of India. Through this partnership, the Central Bank of India will be able to 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 Rajeev Kandpal, CFO, GeM and A.K. Mishra, Field General Manager, Central Bank of India in the presence of Talleen Kumar, CEO, GeM.

Integration for payments and various banking services is one of the priorities for GeM towards the goal of paperless, contactless and cashless systems. GeM has already signed MoU with 18 Public Sector and Private Banks to enable this.

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 and 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.  

The gem is an initiative of the Government of India which offers a one-stop platform for facilitating online procurement of goods and services by Central and State government organizations. GeM provides tools for Direct Purchase, bidding and reverse auction for ensuring transparent and efficient procurement.

(With Inputs from PIB)