The MoU signed by the Government e-Marketplace and the Union Bank of India will facilitate a cashless, paperless and transparent payment system on the portal and will create an efficient procurement system for government entities.
Government of India’s Government e-Marketplace (GeM) on 10th of October signed a Memorandum of Understanding (MoU) with Union Bank of India (UBI).
Ministry of Commerce & Industry’s statement said, “through this partnership, UBI 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) to the registered users on the GeM portal.”
The statement also said that the MoU will facilitate a cashless, paperless and transparent payment system on the portal and will create an efficient procurement system for government entities.
The MOU was signed by S. Suresh Kumar, Addl. CEO, GeM and S. K. Mohapatra, Field General Manager, Delhi, UBI in the presence of Talleen Kumar, CEO, GeM and Ram Kumar Jaglan, Head, Government business Department, UBI.
The Key Priorities for GeM.
Online integration for payments and various banking services is one of the priorities for GeM.
It has already signed MoU with 14 Public sector and private banks to enable this.
GeM is also working with others banks including TReDs, and SIDBI to provide invoice financing and Bill Discounting to the MSMEs registered on GeM.
How does it help businesses?
This will help MSMEs access easy credit and do better business with Government Departments.
GeM is an initiative of the Government of India offering one stop platform facilitating online procurement of common use Goods and Services required by various government departments, organisations, Public Sector Units. GeM provides tools for Direct Purchase, bidding and reverse auction in a transparent manner for government departments.