If you’re new to the Government e-Marketplace (GeM) and Material abrasion your head over “caution money,” don’t worry—you’re not alone! It’s basically a security deposit that sellers have to pay to join the platform.
Think of it like a promise to play by the rules. The idea? To keep things legit and make sure only serious businesses Apply around. Whether you’re a small start-up or a big player, this one-time fee (based on your turnover) is your ticket to selling to government buyers.
GeM Caution Money is a security deposit amount that sellers are required to pay to the Government e-Marketplace (GeM) before they can start selling products or services on the platform. asically a GeM portal registration fees or GeM security deposit that you might come across in certain situations, like when you’re renting a place or signing up for something like a school or a service. Its money you submit over upfront to cover any potential damages, unpaid fees, or other liabilities that might pop up later. The idea is to protect the person or organization you’re dealing with—think of it as a safety net for them. If everything goes smoothly and you don’t break anything or skip out on payments, you usually get it back, either in full or maybe minus some small deduction, depending on the terms.
It’s straightforward when you think about it:
The amount you need to cough up depends on who you are. Small businesses (MSMEs) get a lighter load compared to the big participator. Here’s the Overview:
Fee Structure (Based on Annual Turnover):
Incorporating this caution money into the system is a straightforward process. Here’s what you do:
EMD (Earnest Money Deposit):
Purpose:
EMD is a security deposit submitted by a bidder to show seriousness and commitment to participate in a bid.
Key Points:
Caution Money:
Purpose:
Caution Money is a one-time deposit collected by GeM from new sellers to ensure genuine participation and prevent misuse of the platform.
Key Points:
GeM doesn’t mess around with Caution Money. Some key policies:
Caution Money in GeM is like the Controller for fair, honest government buying in India. It’s a Difficulty to pay, sure, but it keeps the platform trustworthy and gets sellers a shot at government Tender contracts. Stay on top of Gem’s updates, follow the rules, and you’ll find it’s less of a burden and more of a boost for doing business the smart way.
Caution Money
Caution Money vs. Earnest Money Deposit
Deposit Caution Money
GeM portal login
GeM security deposit
GeM portal registration fees
Security Deposit Amount
GeM Caution Money