Moneycontrol
Last Updated : Apr 23, 2018 03:33 PM IST | Source: Moneycontrol.com

Centre to implement 'wallet' system for timely GeM payments from states

The Government e-Marketplace (GeM) portal was launched in 2016 and is used by government agencies for purchase of official goods and services.

Moneycontrol News @moneycontrolcom

The central government has developed a wallet-like facility for states to pay expenses related to the goods and services used for official purposes, according to an Economic Times report.

The Commerce Ministry's Government e-Marketplace (GeM) has developed "pool accounts" where states can make advance payments for official purchases from the Centre.

This move came after the Commerce Ministry received complaints that less than half of the payments were made on time. Only 44% percent of the payments for official procurement were made on time, the report said.

But the states can't deduct money from the account. This removes the eventuality of non-availability of funds.

The money is transferred to the supplier on receipt of the payment.

"The pool account is an automated system where the amount due to the seller is credited and helps states fulfil their contractual part," GeM CEO Radha Chauhan told Economic Times.

The Government e-Marketplace (GeM) portal was launched in 2016 and is used  by government agencies for purchase of official goods and services.

The transaction value on the portal is expected to rise to Rs 30,000 crore by March 2019, the report added.
First Published on Apr 23, 2018 03:33 pm

tags #Economy

Loading...
Sections
Follow us on
Available On
PCI DSS Compliant