As we read about the payment procedure (PFMS) instruction previously it is one of the parts of the payment procedure on GeM. For any kind of business, payment is necessary for continuity. Here, we are going to know about detail information on payment for NON-PFMS agencies which I a government of India. The information is as follows:
1- Non-PFMS agency/entity (NPAE) is the Government of India (GoI), which does not use PFMS for payment of its payments and for payment of contracts/payments for goods/services placed by NPAE on GPA. Their payment system is for All NPAEs will open and operate a special purpose account i.e. GeM Pool account to provide prompt payment to GeM's vendor/service provider, which provides goods/services to NPAE through GeM.
2- Accordingly all organizations/departments including CPSU, Municipality, Educational Institutions, Autonomous Bodies, Societies, etc. not running through PFMS will be covered under these instructions. These organizations are directed to open, operate and operate GeM Pool Account (GPA) for all purchases. The GPA is a special purpose bank account (interest-saving savings / current account) specifically opened, operated and controlled by each NPAE. GeM Pool account will be mandatory for all purchases of value. The GEM Pool account will be exclusively and fully opened, operated and controlled by the purchaser entity/agency, which is an unrestricted restriction on the withdrawal of funds explained in making the paragraph successful. The account will be eligible for savings / current account. Such an account will be opened in any scheduled bank, in which once pool account will be integrated with GeM.
3- The following are the personnel elements of the GPA to be incorporated during the opening and operation/procurement phases. NPAE will open GPA (as a savings or current account) Pursuant to the Service Level Agreement (SLA), GeM will be used by the buyer through the bank's online integration with SPV owned and maintained platforms, and only for the purchase of goods and services on GeM.
The purchase terms and conditions on GeM will be part of GeM Registration and the operational effort between the bank and NPAE.
The role of the bank will be limited to ensuring the operation of the account on the instructions of the NPAE through the authorized NPAE nodal officer for the GeM/buyer.
The real-time statement of all operations of the account will be shared by the bank with the NPAE in a mutually desired format (to be revised from time to time), only through the GEM platform.
Once a sub-account / transaction specific account is credited with an amount, NPAE cannot withdraw this amount, unless the designated live, specified vendor/service provider is not transferred.
Any withdrawal/transfer by NAME from this account, other than payment to the vendor/service provider, will be allowed in the event of a chase.
All analog-inverse conditions are first required to be flagged on the GEM platform for NPAE.
4- When purchasing goods and services through GeM, the NPAE should credit 100% of the estimated contract value in the sample of Goods contract to their GeM Pool account after awarding the contracted award. In the case of services, the value should be attributed to one payment trundling specified in the contract and the amount required for the next payment trundling, excluding issuance of payment for any cycle, to ensure the availability of money payable for the next money. The payment to be made will not be withdrawn for any other purpose, for which the value is credited to the GeM Pool account.
5- After the appointment of the contract on GeM, the procedure for PRC and CRAC will be the same for the NPAE category as indicated in Para 7 (A) (x), in relation to provisional receipts on GeM and stores (A) ( xi)Receipt and acceptance of stores on GeM for consignee PFMS buyers. To know more about PFMS clink on the link below.
6- After the CRAC is issued, the NPAE Nodal Officer will issue a piece of translation from the GeM Pool account without waiting for the bank to release the lot value payable to the vendor/service provider as per the contract. Upon authorization, the bank should transfer the fixed price to the vendor/service provider supplier mapped in the transaction.
7- In case of payment to the vendor/service provider, GeM will inform the purchaser and the bank of the same on violation of the Service Level Try-on (SLA) on behalf of the NPAE. Post such Notice and non-action on behalf of NPAE regarding payment transfer, of consignment, specified as per bank consignee destination/milestone winnings (such as installation / commissioning or completion of training, etc.) will issue payment for words. Contract) / service term as notified in the terms and conditions that the vendor/service provider mapped to the transaction has in the terms of purchase on GeM. Such a provision needs to be included in the GPA and should be considered a standing instruction from the NPAE to the bank. Residual value cannot be withdrawn /transferred by NPAE in such cases.
8- If the buyer has not initiated the payment process through the GeM platform, without issuing the Consignee Receipt and Acceptance Document (CRAC) / Auto-Generated CRAC, a payment trigger will be automatically generated for payments equal to 80% Achievement/service term of the respective quantity/milestone deducted by the system as per CRAC. In addition, the information will be sent to HoD, Purchaser and NPAE Nodal Officer for GeM regarding the release of payment in accordance with the terms, conditions, and conditions (T&C) for GeM and the terms of procurement of SLA. Residual payment of 20% by the purchaser is to be processed within 35 days without adjusting for any statutory deductions and losses, lightly that is without 35 days, automatically through alerts to the bank to the seller/service provider will be issued. The GeM platform knows the statutory deduction and the deduction without any system.
9- Unutilized funds, without termination of the contract and without accrued interest on the credited value, will be at the disposal of the designated NPAE Nodal Officer, who can teach the bankers to remote, as deemed fit.
10- The Steering Committee on GeM of each Ministry should monitor the implementation of these instructions regarding the operation of the GeM Pool account.
11- The Ministries / Departments of the Government of India are requested to issue necessary instructions to all non-PFMS agencies/institutions under their control.
Any non-PFMS agency/entity with the approval of their competent authority has decided that their PFMS system is an integration of their on-line payment system with functionality for blocking funds as per PFMS Outlined Payment Procedures. The mutatis and mutandis in Para 7 (a) would be suitable for them.
Currently, to unlock funds, during the end of the financial year-end, buyers are required to send emails, etc. to GEM. After this, GeM unlocks the payment manually. GeM will automate this entire process.