GeM signs MOU with Federal Bank

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Federal Bank Launches Open Banking Platform

24th October 2019, Chennai: Government e-Marketplace (GeM) signed Memorandum of Understanding with Federal Bank, a leader private sector bank in the country. GeM is a marquee initiative of the Government of India offering one stop platform facilitating online procurement of common use goods and services required by various government departments, organizations and PSUs. GeM provides tools for direct purchase, bidding and reverse auction in a transparent manner for government departments.

Online integration for payments and various banking services is one of the priorities for GeM. GeM has already signed MoU with 15 Public Sector and Private Banks to enable this. Through this partnership, Federal Bank 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) and Earnest Money Deposit (EMD) etc. to the registered users of 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.

The MoU was signed by S. Suresh Kumar, Addl. CEO, GeM and R. Vardharajan, Country Head – Government Business, Federal Bank along with Deepesh Gehlot, Director (GeM) and Hemant Kumar Mahindru, State Business Head – Government Business, Federal Bank in the presence of Shri Talleen Kumar, CEO, GeM.

GeM is also working with Banks, TReDs (Trade Receivables Discounting System) and SIDBI to provide invoice financing and bill discounting to the MSMEs registered in GeM. This will help MSMEs access easy credit and do better business with Government.