Federal Bank has announced a collaboration with NCDEX e Markets Limited (NeML) to fortify the integration of eProcurement and eAuction systems.
According to an official release, this alliance is set to facilitate an eProcurement solution, streamlining the processes for Central and State Government organisations. Under this initiative, farmers are believed to list crop details on NeML’s platform, and the government will purchase them at the Minimum Support Price (MSP). From what it’s understood, the integration of Federal Bank’s host-to-host with NeML’s eProcurement platform ensures a payment processing system for these government transactions. In addition, NeML’s eAuction solution can bring benefits to the Government of India by providing a price-discovery mechanism for commodities.
Reportedly, advantages of this system include nationwide participation, improved price discovery, and safeguarding against possible cartel formations, ensuring a chance for participants to enhance their bid value as per market scenarios. Sources suggest that features of the collaboration include end-to-end digital execution of payments and collections, a plug-and-play solution tailored for government clients, simplified one-time documentation process with clients, automated reconciliation of each remittance within NeML’s web portal, customisable payment advice to each beneficiary against the payout, and no additional charges or costs involved.
It’s believed that delegates who’ll be signing the Memorandum of Understanding include Indraneel Pandit (senior vice-president and zonal business head Federal Bank, CIB West), Vikas Mulay (deputy vice-president – I and head – GIB West), Sagar Deshpande (senior manager and circle business head, GIB), Dhawal Shah (chief operating officer, NeML), and Anand Ganapathy (assistant vice-president – special projects, NeML).
