GeM, the online marketplace for public procurement, has signed a memorandum of understanding with Central Bank of India to offer services such as transfer of funds through GeM pool accounts, advising of electronic performance bank guarantees and earnest money deposit to registered users. The agreement was signed by Rajeev Kandpal, chief Financial Officer, GeM and AK Mishra, field general manager,Central Bank of India. Talleen Kumar, CEO, GeM, also was present.
Integration for payments and other banking services is key to GeM’s goal of a paperless, contactless and cashless system. The online marketplace has already signed agreements with 18 public and private sector banks towards this end.
GeM is in pact with banks, TReDs, and SIDBI to provide bill discounting and working capital financing services where the cost of capital is linked to the performance and rating of a seller on GeM. This service will help the MSMEs to access easy credit and do business with the government. GeM also plans to create EMD pool accounts for helping sellers comply with EMD requirements while putting in bids.
GeM is a government initiative that offers a one-stop platform for online procurement of goods and services by central and state governments and public sector undertakings. GeM facilitates direct purchase, bidding and reverse auction to ensure efficient and transparent purchases.
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