Government e-Marketplace (GeM) on Friday said it has signed a pact with Union Bank of India (UBI) under which the bank will offer several services to it including transfer of funds.

The Commerce Ministry launched the procurement portal GeM to increase transparency in public procurement of goods and services, which is estimated at about Rs 8 lakh crore per year.

“UBI will be able to offer an array of services including transfer of funds through GeM pool accounts, advising of performance, bank guarantees and earnest money deposit to the registered users on the portal,” it said. The memorandum of understanding (MoU) will facilitate a cashless, paperless and transparent payment system on the portal and will create an efficient procurement system for government entities, it added.

“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,” it said. It added that GeM is working with others banks, TReDs, and SIDBI to provide invoice financing and bill discounting to the micro, small and medium enterprises (MSMEs) registered on GeM.

“This will help MSMEs access easy credit and do better business with government departments,” it said. West Bengal-cadre IAS officer Talleen Kumar was recently appointed as the new Chief Executive Officer of GeM.

According to GeM, 2,88,212 sellers and service providers have registered with the portal so far to sell 1,348,380 products and 17,677 services. The government has made it mandatory for all government departments and ministries to source goods and services from its e-marketplace.

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