Government e-Marketplace (GeM) has signed MoU with Indian Bank and Canara Bank. The MoU will facilitate a cashless, paperless and transparent payment system on the portal and would create an efficient procurement system for government entities. Through this partnership, both the banks will be able to offer an array of services including transfer of funds through GeM Pool Accounts (GPA), advising of Performance Bank Guarantees (e-PBG), Earnest Money Deposit (EMD) and Payment Gateway to the registered users on the portal.
The MOU with Indian Bank was signed yesterday by S. Suresh Kumar, Addl. CEO, GeM and M Karthikeyan, GM, Indian Bank along with Deepesh Gehlot, Director, GeM and Narendra Kumar, AGM, Indian Bank in the presence of Talleen Kumar, CEO, GeM. The MOU with Canara Bank was signed by Addl. CEO, GeM and R P Jaiswal, DGM, Canara Bank along with Shantanu Kumar Mazumdar, GM, Canara Bank.
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 sellers in general and MSMEs in particular to access easy credit and do better business with the government. In addition, GeM is contemplating creation of EMD pool account for making it easy for sellers to comply with the EMD requirements while responding to bids.