GeM Caution Money Deposit Slabs: Mandatory Thresholds (₹5,000 to ₹25,000), Bank Mandate & Refunds

Understanding GeM Caution Money Deposit Slabs and Management

To discourage non-serious bidders, prevent fraudulent catalog uploads, and enforce contractual discipline during public tender execution, the GeM portal mandates that every active seller must deposit a one-time refundable Caution Money Deposit. Until this caution money is funded and verified, the seller is blocked from participating in bids or publishing product catalogs.

The caution money amount is tiered based on the seller's annual turnover. The funds are deposited into a dedicated escrow account or GeM Pool Account (GPA) opened with partner banks. In cases of severe contractual default (such as failure to deliver accepted purchase orders), GeM authorities can deduct penalty sums directly from the caution money. At KOKJAGUAR Consultancy, we help Pune businesses set up caution money accounts with ease. Review our GeM financial setup services.

Statutory Caution Money Slabs

• Turnover Less than ₹1 Crore: Statutory caution money deposit of ₹5,000.
• Turnover Between ₹1 Crore and ₹10 Crores: Statutory caution money deposit of ₹10,000.
• Turnover Exceeding ₹10 Crores: Statutory caution money deposit of ₹25,000.
• Refundability: 100% refundable upon voluntary de-registration from the portal, provided no incidents or disputes are pending.