GeM has made it mandatory from 01-01-2021 for every seller to submit the caution money on GeM portal. This money will remain deposited with GeM to ensure you as seller act disciplinary manner. Based on the turnover of your firm, you need to deposit this amount
- Seller Turnover is less than 1 Crore: Rs. 5,000/-
- Seller Turn over > 1 Crore but < 10 Crore: Rs 10,000/-
- Seller Turn over > 10 Crore: Rs 25,000/-
If you have not deposited the caution money, then you won’t be able to receive an order on the GeM portal.
If you have not deposited the caution money, then you won’t be able to receive an order on the GeM portal.
- Seller rejects or does not accept any Direct Purchase / L-1 Purchase order within defined timelines leading to order auto cancellation.
- Failure of the seller in executing any GeM contract or if the seller fails or neglects to observe or perform any of his obligations under the contract (applicable only in respect of contracts that did not have provision of Performance Security / PBG).
- Withdraws any bid submitted on GeM within the period of validity of the bid.
- Fails to furnish requisite performance security / PBG as per GeM e-bid / RA conditions.
In case your caution money is forfeited in full, or part and caution money on your account goes below the above-mentioned amount then GeM admin will put your account on hold, and you won’t be able to do any activity again until you deposit caution money
How to pay caution money:
1.Login to GeM Portal
2. Click on Dashboard
3. Click on Manage Caution Money Account
4. You will be redirected to ‘Add Account’ Page
5. Select the Bank Account either Axis Bank or ICICI Bank ( Please note this not related to your current/saving bank account. GeM will create a new ESCROW account for you instantly in any of this bank)
6. Check the terms and condition
7. Click on Submit button
8. Your Caution Money account will be generated. You can note downt the account number and IFSC code for it
9. The current available balance will be Zero.
10. Click on Add Fund and View statement to add the balance to the GeM Caution Money account
11. Click on ‘Fund Transfer’ option on the bank page
12. Enter the caution money amount needs to be deposited
13. Click on the submit button
14. Note down the account number and IFSC code and deposit the amount using NEFT from your bank account to said account number before 6:00 PM
Once you deposit the amount using NEFT the amount will be reflected on the GeM portal next day