GeM inks MoU with Federal Bank to offer various services
The MoU will facilitate a cashless, paperless, and transparent payment system on the GeM portal, to create a procurement system for government entities.
The government e-Marketplace (GeM), a public procurement portal, on Wednesday signed a Memorandum of Understanding (MoU) with Federal Bank to offer different services, including the transfer of funds.
The MoU will facilitate a cashless, paperless, and transparent payment system on the portal, and would create an efficient procurement system for government entities, the Commerce ministry said in a statement.
The bank will offer a number of services, including the transfer of funds through GeM pool accounts, advising of performance bank guarantees and earnest money deposit, to the registered users on the portal.
The statement said that GeM is also working with banks, 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.
"This will help the sellers in general and MSMEs, in particular, to access easy credit and do better business with the government," it said.
In August 2019, GeM also signed an MoU with SIDBI in order to help MSMEs, women entrepreneurs, self-help groups (SHGs), women self-help groups, and various loan beneficiaries under MUDRA and Stand-up India scheme.
The Commerce ministry launched procurement portal GeM in August 2016 to increase transparency in public procurement of goods and services, which is estimated at about Rs 8 lakh crore per year.
About three lakh sellers and service providers have registered with the portal so far to sell over 13 lakh products and over 17,000 services.
The government has made it mandatory for all government departments and ministries to source goods and services from its e-marketplace.
The portal provides a wide range of products from office stationery to vehicles. Automobiles, computers and office furniture are currently the top product categories.
Services, including transportation, logistics, waste management, webcasting and analytical, among others, are listed on the portal.
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