Answered on March 06,2020
GeM Pool Account (GPA) is a special purpose bank account (interest-bearing savings account) opened, operated and controlled exclusively by each Non-Government Entity for the purpose of crediting 100% projected value of contracts/supply orders into the account and for subsequently making timely payments to the vendors/suppliers on successful supply and acceptance of goods and services ordered on GeM against supply orders placed by the Non-Government Entity on GeM.
The following are the core elements of GPA that should be incorporated during the opening and operations/procurement stages.
- Non-Government Entity will open the GPA (as a savings account) which will be utilized by the buyer through the online integration of Bank with the platform owned and maintained by GeM SPV, as per Service Level Agreement (SLA) and solely for procurement of goods and services on GeM
- The terms and conditions of procurement on GeM will be part of the operations agreement between the bank and Non-Government Entity
- The role of the bank will be limited to ensuring operations of the account on the instruction of the Non-Government Entity through its authorized nodal officer of GeM/buyer.
- Real-time details of all operations of the account will be shared by the bank, in a mutually accepted format (to be amended from time to time) with the Non-Government Entity only through GeM platform
- Once a sub-account/transaction specific account is credited with an amount, the Non-Government Entity cannot withdraw this amount, apart from transfer to the designated supplier, till such a time that the transaction is live.
- Any withdrawal/transfer by the non-Government Entity from this account, except for payment to the supplier, would be permitted in the following conditions.
- Order Cancellation
- Order Rejection