In a bid to advertise self-discipline and promptness in cost, the Centre has taken a step to cost curiosity on delayed funds to distributors on its Government e-Marketplace (GeM) initiative, which is able to particularly profit distributors within the micro, small and medium enterprises (MSME) phase, and assist them in changing into self-reliant.
“For procurement 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,” the Ministry of Finance stated in a memorandum.
“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 at 1 per cent per month for the delayed payment beyond the prescribed timeline till the date of such payment,” it added.
The above change will come into impact from October 1, 2020.
The cost of the curiosity shall be prorated for the interval of delay, in response to the memorandum.
The quantity collected by this will probably be deposited in a separate account maintained by the Government e-Marketplace and will probably be used for the schooling of sellers, patrons, or for different functions associated to GeM or public procurement with the prior approval of the Department of Expenditure.