Gem partners with UCO Bank, BoM for Payment related services

The government e-marketplace has signed two agreements with Bank of Maharashtra and UCO Bank to offer services like transfer of funds through GeM pool accounts and earnest money deposit (EMD) to the registered users on the portal.

The pact also include advising of performance bank guarantees (e-PBG).

The MoUs were signed on December 16, according to an official statement.

"Integration for payments and various banking services is one of the priorities for GeM towards the cherished goal of a paperless, contactless and cashless system. GeM has already signed MoUs with 19 Public Sector and Private Banks to enable these functionalities," the Commerce and Industry Ministry said in the statement.

It further said the 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 the marketplace.

"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," the statement said.

GeM SPV is the national public procurement portal for ensuring efficient and transparent mechanisms for procurement of goods and services by central and state government organisations.

It is an initiative of the Centre which offers a one stop inclusive platform for facilitating online procurement. GeM provides tools for direct purchase, bidding and reverse auction for ensuring transparent and efficient procurement.