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GeM Partners with Central Bank of India for Payment Related Services

IBEF:  November 08, 2019

Government e-Marketplace (GeM) today signed MoU with Central Bank of India. Through this partnership, 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 Mr. Rajeev Kandpal, CFO, GeM and Mr. A.K. Mishra, Field General Manager, Central Bank of India in the presence of Mr. 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 system. GeM has already signed MoU with 18 Public Sector and Private Banks to enable this.

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

GeMis 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.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.