The Government e-Marketplace (GeM) recently signed Memorandum of Understanding with Federal Bank, a leader private sector bank in the country to offer a range of online services.
The GeM is an innovative initiative of the Government of India offering a 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. In this initiative, online integration for payments and various banking services is one of the priorities for GeM, which 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) and more to the registered users of the website. The MoU also facilitates a cashless, paperless and transparent payment system on the portal and would create an efficient procurement system for government entities.
S. Suresh Kumar, Additional 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 signed the MoU in the presence of Talleen Kumar, CEO of 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.
Federal Bank is a leading private sector bank with a branch network of 1,251 branches and 1,934 ATMs/Recyclers spread across the country. The bank’s total business mix (deposits + advances) is pegged at Rs 2.46 lakh crore as on March 31, 2019. What is more, the bank has earned a net profit of Rs. 1,244 crore for FY19. The Capital Adequacy Ratio (CRAR) of the bank, computed as per Basel III guidelines, stood at 14.14%. Federal Bank has its Representative Offices at Dubai and Abu Dhabi that serve as a nerve centre for NRI customers in the UAE. Furthermore, Federal Bank also has an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City). Federal Bank is transforming itself, keeping its principles intact, into an organisation that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress.