Government e-Marketplace (GeM) set up to procure goods from MSME sellers has inked a memorandum of understanding with private sector lender Federal Bank for enabling the latter to offer services including transfer of funds through GeM Pool Accounts.
Further, Federal Bank would give offer advice of Performance Bank Guarantees (e-PBG) and Earnest Money Deposit (EMD) to the registered users on the portal, said a communique from the commerce ministry..
The strategic partnership would also facilitate digital payments and paperless payments on the portal.
GeM platform was unveiled in August 2016 to assist government departments with hassle free procurement of goods and services in a genuine manner.
Besides, it is working with other lenders, Trade Receivable Discounting System, and SIDBI to offer “bill discounting and financing of working capital where the cost of capital is linked to the performance and rating of a seller on GeM,” the ministry said.