Emd In Gem Payment Process

EMD in GeM - Payment Process, Refund and Forfeiture conditions

Posted On : 08 May 2026

The Earnest Money Deposit is mandated by government departments as a safeguard to ensure that only genuine and serious bidders participate. It acts as a protective measure for buyers by discouraging non-serious or fraudulent participants from entering the bidding system.

The vendors are required to submit the EMD in GeM Tenders which shows seriousness of the bidder. EMD meaning in GeM is for Bid Security. EMD acts as a security deposit for the seller that they are serious and they can not draw the tender back after winning the tenders.

Is EMD Mandatory in GeM Tenders?

EMD in GeM Portal is not mandatory for all tenders. In some tenders, the EMD is not required; in some cases, it is exempted for certain categories while in some tenders it is mandatory for all categories even for exempted categories. The EMD in GeM tender varies as per the tender details.

Cases where EMD is Required

  • High-Value Tenders - EMD on GeM is generally mandatory in bids where the tender value exceeds ₹5 lakh.
  • Non-Exempted Sellers - The Bidders who do not fall under exempted categories such must submit EMD.
  • Sellers Without OEM - If the bidder is not the OEM or does not meet exemption criteria.
  • Custom Bids - The EMD GeM is often mandatory to ensure bidder seriousness and financial commitment in complex or project-based tenders.

Cases where EMD is NOT Required

  • Low Cost Tenders - The vendor does not need to furnish an EMD for tenders with value less than ₹5 Lakh.
  • Eligible MSMEs - Eligible MSMEs with valid Udyam Registration along with product-service alignment.
  • Start-Ups - The start-ups registered with DPIIT under the program Start-up India.
  • BIS License - Businesses having a valid BIS License with respect to the tendered products/services.
  • PSUs - Public Sector Undertakings and Government bodies.
  • Organizations Specifically Registered - The organizations like KVIC, Coir Board, TRIFED, Kendriya Bhandar, etc.

EMD in GeM Portal - Rules and Applicability

If the valuation of the bids/RA is less than ₹5 lakh, then EMD in tenders will not be needed. If the procurement amount exceeds ₹5 lakh, then the EMD amount needs to be mentioned by the buyer during bid finalization. The sellers have to upload a scanned copy of the EMD Payment within five days after the opening of bids.

According to the guidelines, the GeM EMD percentage should ideally be 1% of the estimated value of the procurement, although this can vary from 0.5% to 5%. EMD required for GeM tender needs to be valid up to 45 days after the bid validity period. The bidder should keep in mind that no interest will be paid on Bid Security or any other security deposit made by them.

GeM EMD Payment Process

Earnest Money (EMD) ensures accountability of the sellers for their listed products and services. The payment process for EMD in GeM tender is as below:

  1. GeM Portal - Go to the portal and login by using the official id.
  2. Search Bid - The seller has to search the bid number for participation.
  3. EMD Draft Document - The vendor needs to download and prepare the EMD Draft Document from GeM.
  4. EMD Exemption - The vendor needs to select No in the EMD exemption option.
  5. Payment Process - The bank will create the BG and do the required processing as per the Draft Document. Also the bank will send an EMD Receipt to the Seller via email. Bank will auto-intimate GeM of the EMD confirmation.
  6. EMD Details - The seller has to mention the details as per the EMD Draft Document.
    • EMD Receipt - Upload EMD Receipt in the PDF format.
    • Amount Details - Advisory Bank, EMD percentage, EMD amount, ePBG Required.
    • Bank Details - Issuing Bank Name, Branch Name, Branch Manager name, Email id, Guarantee Number, Bid Number, EMD Amount, validity Date.
  7. Submit the Application - Accept the terms and complete the OTP verification to make the EMD in GeM Portal successful.

GeM EMD Refund Rules

EMD on GeM is refundable; the government takes it only for making it a financial commitment from the sellers during Tender bidding. The EMD is refunded in both cases when the seller wins the bid and does not win the bid. EMD GeM refund is processed normally within 15 days of the bid finalization.

  1. Unsuccessful Bidders - When the Bidder does not get the tender, the EMD is processed. The refund request gets raised once after tender finalization. The money is transferred in the bidder account provided at the time of registration.
  2. Successful Bidder - The bidder EMD amount gets adjusted against security deposit or refunded after the agreement execution.
  3. EMD Refund Modes - The EMD refund process is simple. Once the bid process gets over, the EMD refund is issued to all the bidders through the original payment method.

GeM EMD Forfeiture Rules

EMD in GeM tenders can be forfeited under certain conditions. This usually happens when a bidder fails to comply with the rules of the tender or withdraws from the process without valid reasons.

Forfeiture acts as a safeguard for buyers against non-serious participation and protects the buyer’s interest in the procurement process. Some of the common conditions under which EMD may be forfeited in GeM are:

  • Withdrawal of bid after submission
  • Won the bid but refused the contract
  • Failure to start work on time
  • Violation of tender conditions
  • Failure to submit performance security
  • Submission of incorrect or false documents

EMD required for GeM tenders is for the vendor to follow the tender guidelines and avoid the rule violation and complete the work successfully. The vendor can avoid the EMD forfeited by reading tender documents carefully, meeting all terms and submitting correct information.

TendersPlus guides the vendors in completing the GeM Registration, GeM EMD refund rules and process. It helps prepare and upload the documents, including credentials, financial, and technical details along with EMD in GeM. Our expert team supports vendors in managing the GeM EMD payment process, protecting them from EMD fortification and getting verified status on the GeM portal. The vendor can register on our website or connect with our team on WhatsApp @ +91 9279921887 or mail us @ contact@tendersplus.com. Start your GeM Tenders journey with TendersPlus now!

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