Delayed payments in Government e-Marketplace (GeM) – Payment of interest reg.
“हर काम देश के नाम”
रक्षा लेखा महानियंत्रक
Controller General of Defence Accounts
उलान बटार रोड़, पालम, दिल्ली छावनी-110010
Ulan Batar Road, Palam, Delhi Cantt — 110010
(एकिकृत वित्तीय सलाहकार स्कन्ध)
(IFA WING)
No: – IFA/109/GeM/Voll II
Dated: -17.07.2020
To
All PCsDA/PCA (Fys.)/CsDA/CsFA (Fys.)
(Through CGDA Website)
Prompt payment to suppliers including MSMEs: Charging of interest on delayed payments in Government e-Marketplace (GeM).
A copy of Govt. of India, Ministry of Finance, Department of Expenditure, procurement of Policy Division No. F.6/18/2019-PPD dated 03.07.2020 on the above subject is forwarded herewith for your information, guidance and compliance please.
2. In this regard, competent authority has directed to remain alert to make all efforts to avoid payment of penal interest.
3. This issues with the approval of Addl. CGDA (Fin.)
Enclosures: As above
(G K Barnwal)
Sr.Dy.CGDA(Fin)
No. F 6/18/2019-PP
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
512, Lok Nayak Bhawan,
New Delhi Dated the 3rd July 2020
Prompt payment to suppliers including MSMEs: Charging of interest on delayed payments in Government e-Marketplace (GeN)
Reference: This Department O M No F.6/18/2019-PPD dated 23 01 2020
Government has been repeatedly emphasizing the need for prompt payment to vendors specially the MSME vendors The intent of the Government in this regard has been articulated under the Aatmanirbhar Bharat pronouncements For procurements made under rule 149 of GFRs 2017, buyers are mandated to make payments within 10 calendar days after generation (including auto generation) of Consignee Receipt and Acceptance Certificate (CRAC) in the GeM.
2. In order to promote greater discipline and timeliness in payment to vendors. it is decided that whenever a CRAC is auto generated or issued by a buyer and payment is not made 10 days thereafter, the buyer organization will be required to pay penal interest @ 1% per month for the delayed payment beyond the prescribed timeline till the date of such payment The charge of interest shall be prorated for the period of delay. (For example, if CRAC is generated on the 1st day of a month and payment is made by the buyer organization on the 20th day of the month, interest for 10 days will be charged The penal interest will be 10/30 multiplied by 1% i.e 0.33%) Month may be taken as 30 days in all cases.
3. The amount collected in this regard shall be deposited in an account maintained by GeM This interest will not be paid to the vendor and will be kept by GeM in a separate account which will be used only for the education of sellers/buyers etc. or other purposes related to GeM or public procurement with the prior approval of Department of Expenditure This shall not cover any other interest payable to vendors under any law or contractual obligations, which will be over and above the interest as charged above.
4. The above conditions will be applicable for all procurements made frorn 1st
October, 2020.
5. This issues with the approval of Finance Minister.
(Kotluru Narayana Reddy)
Depuly Secretary to the Govt. of India
Tel No 24621305 Email: kn reddy@gov in
T0,
All the Secretaries and Financial Advisers to Government of India
Copy to.
- CGA, CGDA. FC/Railway Board – For information and necessary action
- Secretary, Department of Public Enterprises with a request to consider issuing appropriate instructions to Public Sector Undertakings in this regarg.
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