The Government e-Marketplace (GeM), a public procurement portal, has signed a memorandum of understanding (MoU) with Federal Bank to offer different services, including the transfer of funds. 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 bank will offer a number of services, including the transfer of funds through GeM pool accounts, advising of performance bank guarantees and earnest money deposit, to the registered users on the portal. GeM is also working with banks, and SIDBI to provide bill discounting and financing of working capital where the cost of capital is linked to the performance and rating of a seller.
Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. It offers personal, corporate, NRI, SME banking, online banking services to its customers.