Federal Bank to offer govt e-market place related payment services
24 October 2019
The Government e-Marketplace (GeM) on Wednesday 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, an official release stated.
S Suresh Kumar, additional CEO, GeM and R Vardharajan, Country Head - Government Business, Federal Bank along signed the MoU.
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 and rating of a seller on GeM. This will help the sellers in general and 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.