Consider the following statements regarding GeM availability and procurement threshold limits for ministries:
1. Under Rule 149 of the General Financial Rules, 2017, procurement of goods and services up to Rs. 25,000 is permitted through any available suppliers on the GeM portal.
2. For procurement exceeding Rs. 30 lakhs, the GeM portal provides for a mandatory bidding process, and the platform currently supports transactions in all regional languages recognized by the Eighth Schedule of the Constitution.
3. The GeM portal facilitates reverse auctions for procurement values exceeding Rs. 50 lakhs, and it currently hosts over 60,000 government organizations including autonomous bodies and local urban bodies.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as per Rule 149 of GFR 2017, which mandates procurement of common-use goods and services up to Rs. 25,000 through GeM. Statement 2 is incorrect because while bidding is mandatory for higher values, the GeM portal does not currently support all Eighth Schedule languages. Statement 3 is incorrect because, although GeM facilitates reverse auctions, the threshold for mandatory reverse auction is Rs. 50 lakhs, but the portal hosts significantly more than 60,000 organizations, with current figures exceeding 1.5 lakh entities.
Consider the following statements regarding GeM inclusion of startups and exemption from prior experience criteria:
1. As of the fiscal year 2023-24, the GeM portal has facilitated cumulative procurement exceeding 3 lakh crore rupees since its inception.
2. The GeM Startup Runway initiative provides a dedicated window for startups to showcase their innovative products and services to government buyers.
3. Rule 173 of the General Financial Rules (GFR) 2017 allows for the relaxation of prior turnover and prior experience criteria for startups registered with the DPIIT.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM achieved a cumulative Gross Merchandise Value (GMV) exceeding ₹3 lakh crore by early 2024, reflecting its rapid growth since its 2016 inception. Statement 2 is correct because the 'GeM Startup Runway' was specifically launched to provide startups with a seamless platform to list and sell innovative products directly to government entities. Statement 3 is correct as Rule 173 of the GFR 2017 mandates that government departments relax prior turnover and experience requirements for DPIIT-recognized startups to promote inclusivity in public procurement.
Consider the following statements regarding Data analytics and demand aggregation features on GeM:
1. The Government e-Marketplace (GeM) was launched on August 9, 2016, to facilitate online procurement of common-use goods and services by various government ministries and agencies.
2. The GeM platform utilizes the 'GeM Analytics' dashboard, which provides real-time data visualization of procurement trends, top-performing sellers, and category-wise spending patterns.
3. Demand aggregation on the GeM portal allows the pooling of requirements from multiple buyer organizations to achieve economies of scale and lower unit prices for standardized items.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM was launched on August 9, 2016, by the Ministry of Commerce and Industry to ensure transparent and efficient public procurement. Statement 2 is correct because the GeM Analytics dashboard provides stakeholders with real-time insights into procurement data, helping in evidence-based decision-making and tracking spending patterns. Statement 3 is correct as demand aggregation enables the government to consolidate requirements across various departments, leveraging bulk-buying power to secure competitive pricing and economies of scale.
Consider the following statements regarding GeM Sahay for MSME credit facilitation:
1. Under the GeM Sahay mechanism, the loan disbursement process is initiated immediately after the successful delivery of goods and the generation of an invoice on the portal.
2. The GeM Sahay system is managed by the Reserve Bank of India to provide real-time liquidity support to vendors who have been awarded contracts by Central Public Sector Enterprises.
3. The GeM Sahay portal provides for an automatic credit guarantee cover of up to 50 lakh rupees for all MSMEs that have completed at least five successful transactions on the GeM portal.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as GeM Sahay facilitates 'on-invoice' financing, allowing MSMEs to receive instant loans upon order fulfillment and invoice generation. Statement 2 is incorrect because GeM Sahay is a platform-based initiative integrated with the GeM portal, not managed by the RBI, and it connects MSMEs with multiple lenders rather than being a direct liquidity tool of the central bank. Statement 3 is incorrect because there is no such automatic credit guarantee cover of 50 lakh rupees linked to a minimum transaction count; the platform primarily focuses on facilitating digital lending based on purchase orders and invoices.
Consider the following statements regarding Direct Purchase vs L1 bidding mechanisms on GeM:
1. Rule 150 of the General Financial Rules provides for the GeM platform to conduct reverse auctions, which are currently applied to all procurement categories regardless of the item value.
2. The GeM portal was launched on 9 August 2016 to facilitate online procurement of common-use goods and services by various government ministries and agencies.
3. The GeM portal facilitates procurement for Central Public Sector Enterprises, and its framework includes a provision for local vendors to bypass the L1 bidding process for contracts valued under ₹50,000.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as GeM was launched on 9 August 2016 to transform government procurement into a transparent, online process. Statement 1 is incorrect because Rule 149 (not 150) of the General Financial Rules governs GeM, and reverse auctions are not mandatory for all categories but are triggered based on specific value thresholds. Statement 3 is incorrect because while GeM facilitates procurement for CPSEs, there is no provision allowing vendors to bypass the L1 bidding process based on a ₹50,000 threshold; procurement must strictly adhere to the defined bidding or direct purchase rules.
Consider the following statements regarding GeM SPV organizational structure and administrative control:
1. Rule 149 of the General Financial Rules (GFR), 2017, provides the legal basis for government departments to procure common-use goods and services through the GeM portal.
2. The GeM portal integrates the Public Financial Management System (PFMS) to enable real-time tracking of payments for vendors and government buyers.
3. The GeM SPV maintains a 100% government-owned status, with its equity held by the President of India through the Ministry of Commerce and Industry.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as Rule 149 of the GFR 2017 mandates that procurement of common-use goods and services by Ministries or Departments shall be mandatory for goods and services available on GeM. Statement 2 is correct because GeM is integrated with the Public Financial Management System (PFMS) and bank gateways to ensure transparent, paperless, and cashless transactions with real-time payment tracking. Statement 3 is correct as GeM is a Section 8 company under the Companies Act, 2013, functioning as a Special Purpose Vehicle (SPV) under the administrative control of the Department of Commerce, Ministry of Commerce and Industry, with 100% government ownership.
Consider the following statements regarding Rule 149 of General Financial Rules (GFR) 2017 mandate:
1. Rule 149 of the General Financial Rules 2017 facilitates the procurement of common-use goods and services by Central Government Ministries and Departments through the GeM portal.
2. The GeM platform integrates the Central Public Procurement Portal, which was established under the 2012 guidelines to replace the manual tendering process for all international defense contracts.
3. The GeM portal was launched on 9th August 2016 by the Ministry of Commerce and Industry to provide an open and transparent procurement platform.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as Rule 149 of GFR 2017 mandates the procurement of common-use goods and services by Central Government Ministries and Departments through the GeM portal to ensure transparency and efficiency. Statement 3 is correct because the GeM portal was indeed launched on 9th August 2016 by the Ministry of Commerce and Industry to create an open, inclusive, and transparent public procurement platform. Statement 2 is incorrect because while GeM is a public procurement portal, it does not replace the manual tendering process for all international defense contracts, nor does it function as an integration of the Central Public Procurement Portal in the manner described.
Consider the following statements regarding Grievance redressal mechanism and GeM dispute resolution portal:
1. The GeM Dispute Resolution Committee is chaired by the Cabinet Secretary and handles all contractual disagreements exceeding a value of 500 crore rupees.
2. The GeM-SAHAY portal was launched in 2021 to facilitate collateral-free loans for MSMEs by leveraging invoice data from the GeM platform.
3. The GeM portal functions under the administrative control of the Ministry of Finance, which oversees the centralized grievance redressal mechanism for state government procurement.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as GeM-SAHAY was launched in 2021 to provide instant, collateral-free liquidity to MSMEs using GeM invoice data. Statement 1 is incorrect because the GeM Dispute Resolution Committee is not chaired by the Cabinet Secretary; instead, GeM has a multi-tier mechanism, and the GeM-DRC is typically headed by a designated official, not the Cabinet Secretary. Statement 3 is incorrect because GeM functions under the Ministry of Commerce and Industry, not the Ministry of Finance.
Consider the following statements regarding Rule 149 of General Financial Rules (GFR) 2017 mandate:
1. The GeM portal is administered by the National Informatics Centre under the Ministry of Electronics and Information Technology, which oversees the registration of all public sector vendors since 2014.
2. The General Financial Rules were first introduced in 1947 to regulate public expenditure, and Rule 149 serves as the primary legal framework for the establishment of the Public Financial Management System.
3. Rule 149 allows for the direct purchase of high-value capital assets exceeding ₹50 lakhs through the GeM portal, provided the procurement is approved by the Cabinet Committee on Economic Affairs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because GeM is administered by the GeM SPV under the Ministry of Commerce and Industry, not the NIC, and was launched in 2016. Statement 2 is incorrect as GFRs were first issued in 1947 but Rule 149 specifically mandates procurement through GeM for goods and services available on the portal, not the Public Financial Management System. Statement 3 is incorrect because Rule 149 makes procurement through GeM mandatory for all government ministries and departments for items available on the portal, regardless of value, and does not require CCEA approval for capital assets.
Consider the following statements regarding Role of GeM in promoting Make in India and Public Procurement Order 2017:
1. GeM integrates the 'Make in India' filter, which allows buyers to identify and prioritize products based on the percentage of local content, defined as the minimum 20 percent threshold for Class-I local suppliers.
2. The GeM portal utilizes the 'Global Tender Enquiry' mechanism for all procurements exceeding 200 crore rupees, which aligns with the WTO Government Procurement Agreement guidelines adopted by India in 2016.
3. The GeM portal incorporates the 'MSE Purchase Preference Policy', which reserves specific categories of goods and services for procurement from Micro and Small Enterprises to support the domestic industrial base.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Public Procurement (Preference to Make in India) Order 2017 mandates a 20% minimum local content for Class-I suppliers to receive purchase preference on GeM. Statement 3 is correct because GeM enforces the MSE Purchase Preference Policy, which mandates that 25% of annual procurement by Central Ministries/PSUs must be from Micro and Small Enterprises. Statement 2 is incorrect because India is not a signatory to the WTO Government Procurement Agreement (GPA), and the threshold for global tenders was revised to 200 crore rupees under the Aatmanirbhar Bharat initiative, not due to GPA adoption.
Consider the following statements regarding Procurement of services vs goods on GeM portal:
1. Rule 149 of the General Financial Rules (GFR) 2017 provides that the procurement of goods and services by Ministries or Departments is permitted through the GeM portal.
2. The Government e-Marketplace (GeM) was launched on August 9, 2016, by the Ministry of Commerce and Industry to facilitate online procurement of goods and services for central and state government organizations.
3. The GeM portal operates under the administrative control of the Department of Expenditure, and it allows for the procurement of specialized defense weaponry directly through the standard service category since the 2019 amendment to the GFR.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statements 1 and 2 are correct as Rule 149 of GFR 2017 mandates GeM for procurement, and the portal was indeed launched on August 9, 2016, by the Ministry of Commerce and Industry to enhance transparency. Statement 3 is incorrect because GeM operates under the Department of Commerce, not the Department of Expenditure, and specialized defense weaponry is generally excluded from standard GeM procurement categories due to security and strategic sensitivity.
Consider the following statements regarding GeM outlet and physical procurement centers:
1. The GeM portal facilitates the 'Make in India' initiative through the Local Content Policy, which allows for the automatic exclusion of all foreign-origin goods from the bidding process for contracts valued above 500 crore rupees.
2. The GeM outlet program was established under the Public Procurement Policy of 2012, and it provides for the mandatory physical inspection of all goods by the Quality Council of India before delivery.
3. The GeM portal is governed by the General Financial Rules (GFR) 2017, and it encompasses a provision where the Ministry of Finance acts as the primary clearing house for all international procurement transactions.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because the GeM portal does not automatically exclude all foreign-origin goods, as the Public Procurement (Preference to Make in India) Order encourages preference for local suppliers rather than a blanket ban. The GeM outlet program is not a mandatory physical inspection scheme under the 2012 policy, and GeM operates as an online marketplace without the Ministry of Finance acting as a clearing house for international procurement. GeM is governed by GFR 2017, but it functions as an end-to-end digital platform for domestic public procurement, not for international transactions.
Consider the following statements regarding Data analytics and demand aggregation features on GeM:
1. The GeM portal introduced the 'National Public Procurement Policy' in 2017, which provides for a mandatory 25 percent procurement quota from MSEs and integrates the GeM platform with the GST network for automated tax validation.
2. As of the fiscal year 2023-24, GeM achieved a cumulative Gross Merchandise Value (GMV) exceeding 4 lakh crore rupees, reflecting significant adoption across central and state departments.
3. The 'GeM Sahay' initiative, launched in 2021, integrates invoice financing services to provide liquidity support to MSMEs based on their verified purchase orders on the portal.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Public Procurement Policy for MSEs was notified in 2012, not 2017, and while GeM integrates with GSTN, the policy itself is a separate mandate under the MSME Act. Statement 2 is correct as GeM crossed the 4 lakh crore GMV milestone in FY 2023-24, showcasing massive scale-up in public procurement. Statement 3 is correct because 'GeM Sahay' was indeed launched in 2021 to provide instant liquidity to MSMEs by leveraging invoice financing against verified purchase orders.
Consider the following statements regarding GeM GeM-NeSL integration for digital contract management:
1. As of the 2023 fiscal updates, the GeM platform allows government buyers to verify the authenticity of performance security documents directly through the NeSL digital repository.
2. The NeSL acts as an Information Utility under the Insolvency and Bankruptcy Code, 2016, providing the underlying infrastructure for the digital contract management services on GeM.
3. The GeM portal utilizes the NeSL platform to verify the Goods and Services Tax registration status of vendors, which replaces the manual validation process previously conducted by the Central Board of Indirect Taxes.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 and 2 are correct because the integration between GeM and the National e-Governance Services Limited (NeSL) enables the digital issuance and verification of Bank Guarantees, leveraging NeSL's role as an Information Utility under the Insolvency and Bankruptcy Code, 2016, to eliminate fraud and manual processing. Statement 3 is incorrect because the NeSL integration is specifically focused on the digital management of Bank Guarantees and performance security, not the verification of GST registration status, which is handled through direct API integration with the GST Network (GSTN).
Consider the following statements regarding GeM payment cycle and automated payment processing:
1. The GeM portal operates under the administrative control of the Ministry of Finance, which oversees the automated payment cycle and the 2016 General Financial Rules amendments.
2. The GeM portal utilizes the National Payments Corporation of India's UPI infrastructure to process payments, which currently covers 100 percent of service-based government contracts.
3. The GeM 4.0 version introduced the 'Payment Gateway Integration' feature, which allows the Reserve Bank of India to hold escrow accounts for all high-value defense procurement contracts.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because GeM is under the Ministry of Commerce and Industry, not the Ministry of Finance. Statement 2 is incorrect as GeM uses the Public Financial Management System (PFMS) for payments, and UPI is not the primary infrastructure for 100% of service-based contracts. Statement 3 is incorrect because GeM does not utilize RBI-held escrow accounts for defense procurement; rather, it uses a multi-modal payment system integrated with PFMS and bank gateways to ensure timely settlement.
Consider the following statements regarding Role of GeM in promoting Make in India and Public Procurement Order 2017:
1. As of the 2020 amendment to the Public Procurement Order, the definition of 'Class-II local supplier' refers to entities with local content equal to or more than 20 percent but less than 50 percent.
2. The GeM portal facilitates the 'Startup India' initiative by exempting recognized startups from prior turnover and prior experience criteria, provided they have been operational for at least seven years since their incorporation.
3. Under the revised GeM framework, the 'Purchase Preference' for Class-I local suppliers is applicable to all procurement contracts, including those funded by international multilateral agencies like the World Bank or Asian Development Bank.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the 2020 amendment to the Public Procurement (Preference to Make in India) Order defines 'Class-I' suppliers as having >=50% local content and 'Class-II' as having >=20% but <50% local content. Statement 2 is incorrect because while GeM exempts startups from prior turnover and experience, the relaxation applies to startups recognized by DPIIT without a specific seven-year operational requirement for this exemption. Statement 3 is incorrect because the Public Procurement Order 2017 explicitly states that its provisions do not apply to procurements funded by international multilateral agencies, as those are governed by the specific procurement guidelines of the funding institutions.
Consider the following statements regarding GeM integration with India Post and logistics service providers:
1. The GeM platform currently supports the 'Logistics e-Marketplace' initiative, which provides a unified dashboard for tracking shipments across multiple private and public logistics partners.
2. As of the 2023-24 fiscal year, the GeM portal facilitates logistics services through the 'GeM-India Post' initiative, covering over 1.5 lakh post offices.
3. The integration between GeM and the Department of Posts allows for the real-time tracking of consignments using the India Post API infrastructure.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The GeM platform integrates with the Logistics e-Marketplace (LeM) to provide a unified dashboard for tracking shipments across various partners, fulfilling the requirements of Statement 1. Statement 2 is accurate as the GeM-India Post initiative leverages the vast network of over 1.5 lakh post offices to facilitate last-mile delivery for government procurement. Statement 3 is correct because the technical integration utilizes the India Post API infrastructure, enabling seamless, real-time tracking of consignments for government buyers and sellers.
Consider the following statements regarding Price reasonableness and dynamic pricing algorithms on GeM:
1. The GeM Price Variance Clause allows for the adjustment of contract prices based on fluctuations in raw material indices, such as the Wholesale Price Index (WPI) published by the Office of the Economic Adviser.
2. The GeM portal was launched on August 9, 2016, by the Ministry of Commerce and Industry to facilitate online procurement of goods and services for Central and State Government organizations.
3. The GeM portal is governed by the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order of 2012, which establishes the Price Preference Policy allowing MSEs to match the lowest quoted price within a 20% margin.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the GeM Price Variance Clause enables price adjustments linked to indices like WPI to account for market volatility. Statement 2 is correct because the portal was indeed launched on August 9, 2016, by the Ministry of Commerce and Industry to streamline public procurement. Statement 3 is incorrect because, under the Public Procurement Policy for MSEs, the price preference margin is 15%, not 20%, allowing MSEs to match the L1 price within that specific range.
Consider the following statements regarding Role of GeM in promoting Make in India and Public Procurement Order 2017:
1. The Public Procurement (Preference to Make in India) Order 2017 provides that for procurement of goods and services where the estimated value is less than 50 lakh rupees, only local suppliers are eligible to participate.
2. The Public Procurement Order 2017 was notified by the Department for Promotion of Industry and Internal Trade under the provisions of the Companies Act 2013 to regulate private sector participation in government tenders.
3. The Government e-Marketplace (GeM) was launched on August 9, 2016, by the Ministry of Commerce and Industry to facilitate online procurement of goods and services for Central and State government organizations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Public Procurement (Preference to Make in India) Order 2017 mandates that for tenders with an estimated value of less than Rs. 50 lakh, only local suppliers are eligible to participate, promoting domestic manufacturing. Statement 3 is correct because GeM was indeed launched on August 9, 2016, by the Ministry of Commerce and Industry to transform public procurement into a transparent, efficient, and inclusive digital marketplace. Statement 2 is incorrect because the Order was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) under the General Financial Rules (GFR) 2017, not the Companies Act 2013, and it applies to government entities rather than regulating private sector participation.
Consider the following statements regarding GeM SPV organizational structure and administrative control:
1. The Government e-Marketplace (GeM) was launched on August 9, 2016, by the Ministry of Commerce and Industry to facilitate online procurement of goods and services.
2. The GeM SPV was incorporated on April 1, 2017, as a statutory body under the Commerce Ministry to replace the Directorate General of Supplies and Disposals.
3. The administrative oversight of the GeM SPV is shared between the Ministry of Electronics and Information Technology and the Ministry of Commerce, following the 2018 cabinet notification on digital procurement.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as GeM was launched on August 9, 2016, by the Ministry of Commerce and Industry to transform public procurement. Statement 2 is incorrect because GeM SPV is a Section 8 company (non-profit) under the Companies Act, 2013, not a statutory body. Statement 3 is incorrect because the GeM SPV is under the exclusive administrative control of the Department of Commerce, Ministry of Commerce and Industry, not shared with the Ministry of Electronics and Information Technology.
Consider the following statements regarding Procurement of services vs goods on GeM portal:
1. Procurement of services on GeM includes categories such as security services, housekeeping, and cloud hosting, which are governed by specific Service Level Agreements (SLAs) defined within the platform.
2. For procurements exceeding Rs. 30 lakhs, the GeM portal facilitates the 'Bid/RA' (Reverse Auction) process to ensure competitive pricing among registered vendors.
3. The GeM portal utilizes a multi-stage verification process for service providers, including integration with the Goods and Services Tax Network (GSTN) and the Ministry of Corporate Affairs database.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM standardizes service procurement through mandatory Service Level Agreements (SLAs) for categories like security and cloud to ensure quality. Statement 2 is correct because, under the General Financial Rules (GFR), GeM mandates the 'Bid/RA' process for procurements above Rs. 30 lakhs to foster price discovery and transparency. Statement 3 is correct as the platform employs API-based real-time verification by integrating with GSTN, MCA, and Aadhaar databases to authenticate the legitimacy of vendors and service providers.
Consider the following statements regarding GeM payment cycle and automated payment processing:
1. The GeM portal is associated with the 'Digital India' mission, which allows for the automatic deduction of penalties from a seller's account if the delivery exceeds the 30-day threshold.
2. The GeM portal provides for a mandatory 15-day payment cycle for central public sector enterprises, which was established by the 2017 Cabinet Committee on Economic Affairs resolution.
3. The GeM portal includes provisions for the 'Direct Bank Transfer' mechanism, which links the seller's GST registration number to the Treasury Single Account system for automated reconciliation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while GeM promotes transparency, it does not have a provision for automatic deduction of penalties from a seller's account. Statement 2 is incorrect as the GeM payment cycle is governed by the General Financial Rules (GFR), and while prompt payment is encouraged, there is no 15-day mandatory cycle established by a 2017 CCEA resolution for all CPSEs. Statement 3 is incorrect because GeM utilizes the Public Financial Management System (PFMS) for payment processing, and there is no mechanism linking GST registration directly to a Treasury Single Account for automated reconciliation.
Consider the following statements regarding Integration of GeM with TReDS platform for invoice discounting:
1. The GeM portal facilitates direct credit lines from the Small Industries Development Bank of India (SIDBI) to vendors, which was established under the 2016 GeM-TReDS Memorandum of Understanding.
2. The integration of the GeM portal with TReDS platforms allows MSME sellers to convert their trade receivables into liquid funds through invoice discounting.
3. The TReDS platform operates under the regulatory oversight of the Securities and Exchange Board of India (SEBI), which manages the digital ledger of discounted invoices generated via GeM.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the GeM-TReDS integration enables MSMEs to upload invoices directly to TReDS platforms, allowing them to auction receivables for early payment and improve liquidity. Statement 1 is incorrect because GeM does not provide direct credit lines from SIDBI; instead, it facilitates the flow of invoice data to TReDS platforms where multiple financiers compete to discount the bills. Statement 3 is incorrect because TReDS platforms are regulated by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007, not by SEBI.
Consider the following statements regarding GeM inclusion of startups and exemption from prior experience criteria:
1. The GeM portal utilizes the Udyam registration database to verify startup status, a system that replaced the earlier MSME registration process in July 2020 under the Ministry of Corporate Affairs.
2. The Public Procurement Policy for Micro and Small Enterprises (MSEs) Order 2012 is integrated into the GeM portal to support the participation of MSEs in government tenders.
3. The exemption from prior experience criteria for startups on GeM is governed by the 2016 Public Procurement Policy, which also provides a 20 percent reservation for startup-manufactured goods in central government tenders.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the Public Procurement Policy for MSEs Order 2012 mandates a 25% annual procurement goal from MSEs, which is seamlessly integrated into GeM. Statement 1 is incorrect because the Udyam registration portal is under the Ministry of Micro, Small and Medium Enterprises (MSME), not the Ministry of Corporate Affairs. Statement 3 is incorrect because, while startups are exempted from prior experience and turnover criteria under the 2016 policy, there is no 20% reservation for startup-manufactured goods; rather, the policy focuses on relaxing eligibility criteria to foster a level playing field.
Consider the following statements regarding Data analytics and demand aggregation features on GeM:
1. The GeM portal incorporates the 'Marketplace Analytics' tool, which provides sellers with insights into regional demand clusters to help them optimize their logistics and inventory management.
2. The 'GeM Availability Report' feature enables buyers to forecast demand by analyzing historical procurement data, which assists in planning annual budget allocations for recurring office supplies.
3. The 'GeM Demand Aggregation Module' was formally notified under the General Financial Rules (GFR) 2017, which provides for the centralized pooling of vehicle procurement requirements and designates the Ministry of Finance as the sole nodal agency for all such bulk tenders.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as GeM's Marketplace Analytics provides sellers with granular data on regional demand, facilitating efficient supply chain planning. Statement 2 is correct because the portal's procurement analytics tools allow government buyers to track historical consumption patterns, enabling accurate budget forecasting for recurring needs. Statement 3 is incorrect because, while GeM supports demand aggregation for cost efficiency, the Ministry of Finance is not the sole nodal agency for all bulk tenders; instead, GeM itself or the respective procuring departments/agencies manage these processes under the guidelines of GFR 2017.
Consider the following statements regarding GeM integration with Central Public Procurement Portal (CPPP):
1. The GeM platform includes a provision for reverse auctions, a feature that was incorporated into the procurement guidelines by the NITI Aayog during the 2016 launch phase to improve price discovery.
2. The integration between GeM and the Central Public Procurement Portal (CPPP) enables the automatic transfer of procurement data to the e-procurement dashboard for monitoring large-value tenders.
3. Rule 149 of the General Financial Rules (GFR), 2017, provides the legal framework for the procurement of goods and services by Central Government Ministries through the GeM platform.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because reverse auctions were introduced by the Ministry of Commerce and Industry, not NITI Aayog, as part of the GeM platform's own procurement tools. Statement 2 is correct as the integration between GeM and CPPP ensures seamless data flow to the e-procurement dashboard for enhanced transparency and monitoring of government spending. Statement 3 is correct because Rule 149 of the General Financial Rules (GFR), 2017, mandates that procurement of common-use goods and services by Central Ministries and Departments must be done through the GeM portal.
Consider the following statements regarding GeM GeM-NeSL integration for digital contract management:
1. The integration between the Government e-Marketplace and the National e-Governance Services Limited facilitates the issuance of digital Bank Guarantees for public procurement contracts.
2. The GeM-NeSL partnership launched in 2018 enables the automated settlement of commercial disputes through the National Company Law Tribunal's centralized mediation portal.
3. The GeM-NeSL framework utilizes the e-Bank Guarantee system to replace traditional paper-based instruments, reducing the processing time from several days to under 24 hours.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 and 3 are correct because the GeM-NeSL integration, launched in 2022, digitizes the entire Bank Guarantee (BG) lifecycle, allowing for the paperless issuance and verification of BGs which significantly reduces processing time from days to minutes. Statement 2 is incorrect because the integration focuses on digital contract management and financial instruments rather than the automated settlement of commercial disputes through the National Company Law Tribunal (NCLT), which is a judicial process outside the scope of this specific portal integration.
Consider the following statements regarding GeM integration with India Post and logistics service providers:
1. The Logistics Data Bank (LDB) project is associated with the GeM portal, and it encompasses the mandatory use of RFID tags for all government consignments exceeding a value of 50,000 rupees.
2. The GeM-India Post partnership allows for the bulk booking of heavy machinery, and this service is currently available through the 'GeM-Freight' portal established in 2020.
3. The GeM portal provides for a dedicated 'Logistics Service Provider' (LSP) rating system, which is managed by the Ministry of Commerce and Industry in collaboration with the National Highways Authority of India since 2018.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because they describe non-existent or misattributed frameworks: the Logistics Data Bank (LDB) project is managed by NICDC for container tracking rather than mandatory RFID for all government consignments, there is no 'GeM-Freight' portal established in 2020 for heavy machinery, and the GeM portal does not feature an LSP rating system managed by the NHAI. While GeM has integrated with India Post for logistics support, these specific mechanisms regarding mandatory RFID thresholds, dedicated freight portals, and NHAI-managed rating systems are factually inaccurate.
Consider the following statements regarding Price reasonableness and dynamic pricing algorithms on GeM:
1. The GeM 4.0 version introduced an enhanced analytics dashboard that provides real-time data on procurement patterns and vendor performance metrics to improve transparency in public spending.
2. The GeM platform integrates the 'National Public Procurement Portal' framework established by the 2015 Digital India initiative, which allows for the automatic rejection of bids that exceed the internal benchmark price by more than 15 percent.
3. The GeM portal implements a 'Reasonableness of Price' assessment by analyzing historical transaction data and current market listings to prevent the procurement of goods at inflated costs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as GeM 4.0 leverages advanced analytics and AI-driven dashboards to track procurement trends and vendor performance, ensuring greater accountability in public spending. Statement 3 is correct because the portal utilizes a 'Price Reasonableness' tool that benchmarks prices against historical data and open market trends to prevent overpricing. Statement 2 is incorrect because while GeM was launched under the Digital India initiative, it does not have a blanket rule for the automatic rejection of bids exceeding a 15 percent threshold; instead, it uses dynamic price discovery and alerts to flag potential overpricing for buyer review.
Consider the following statements regarding GeM vendor assessment and quality certification protocols:
1. The GeM portal introduced the 'Waiver of EMD' (Earnest Money Deposit) facility for registered MSMEs, provided they hold a valid Udyam Registration certificate issued by the Ministry of MSME.
2. As of 2023, the GeM portal integrated the 'GeM-SAHAY' app to provide invoice-based financing for MSMEs, allowing vendors to access credit based on their confirmed purchase orders.
3. The Quality Council of India (QCI) conducts the vendor assessment process for GeM to ensure that sellers meet the technical and infrastructure requirements specified in the product categories.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM provides EMD exemptions to Udyam-registered MSMEs to reduce their financial burden during bidding. Statement 2 is correct because the GeM-SAHAY app, launched in 2021 and operational by 2023, facilitates 'on-the-spot' invoice financing for MSMEs using their GeM purchase orders. Statement 3 is correct as the Quality Council of India (QCI) serves as the primary assessment body to verify the manufacturing capabilities and infrastructure of sellers to ensure quality standards are met.
Consider the following statements regarding GeM usage for primary agricultural credit societies (PACS):
1. The Ministry of Cooperation facilitated the onboarding of Primary Agricultural Credit Societies onto the GeM portal starting in August 2022 to enhance their procurement transparency.
2. The GeM portal operates under the administrative control of the Ministry of Agriculture and Farmers Welfare, which launched the initial pilot project for PACS in 2019.
3. Primary Agricultural Credit Societies utilize the GeM platform to sell their surplus grain stocks directly to the Food Corporation of India at the Minimum Support Price.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the Ministry of Cooperation enabled PACS to onboard the GeM portal in August 2022 to streamline procurement and enhance transparency. Statement 2 is incorrect because GeM is under the administrative control of the Ministry of Commerce and Industry, not the Ministry of Agriculture. Statement 3 is incorrect because PACS use GeM primarily for procurement of goods and services required for their operations, not for selling surplus grain to the Food Corporation of India, which is handled through separate procurement mechanisms.
Consider the following statements regarding GeM integration with Central Public Procurement Portal (CPPP):
1. The GeM platform utilizes the Public Financial Management System (PFMS) for payment settlements, a mechanism that was first introduced by the Reserve Bank of India during the 2015 digital governance reforms.
2. The CPPP provides a centralized interface for publishing global tenders, and the 2019 policy update allows for the automatic migration of all GeM-based contracts to the CPPP for international audit compliance.
3. Under the provisions of the 2017 GFR amendments, the GeM portal functions as a subsidiary of the National Informatics Centre, which manages the technical infrastructure for both CPPP and GeM.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because GeM is a Special Purpose Vehicle (GeM SPV) under the Ministry of Commerce and Industry, not a subsidiary of the National Informatics Centre. Statement 1 is false as PFMS is managed by the Controller General of Accounts, not the RBI, and Statement 2 is incorrect because there is no policy mandating the automatic migration of GeM contracts to CPPP for international audit compliance.
Consider the following statements regarding Price reasonableness and dynamic pricing algorithms on GeM:
1. The GeM platform utilizes a Dynamic Pricing Engine that monitors market trends across various e-commerce sites to ensure that the prices listed on the portal remain competitive with prevailing market rates.
2. Under the General Financial Rules (GFR) 2017, Rule 149, procurement of goods and services by Ministries or Departments is authorized for available items through the GeM portal.
3. The GeM portal features a 'Marketplace Price Comparison' tool that enables buyers to compare the price of a selected product against similar items listed on other major e-commerce platforms.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM employs advanced analytics and price discovery tools to benchmark prices against market trends, ensuring cost-effectiveness for public procurement. Statement 2 is correct because Rule 149 of the General Financial Rules (GFR) 2017 mandates that procurement of common-use goods and services by Central Ministries and Departments must be done through GeM. Statement 3 is correct as the portal integrates price comparison features that allow government buyers to verify competitive pricing against external e-commerce platforms before finalizing purchases.
Consider the following statements regarding GeM integration with Central Public Procurement Portal (CPPP):
1. The GeM portal operates under the administrative control of the Ministry of Finance, which oversees the annual procurement targets for all Public Sector Undertakings as established in the 2017 Budget.
2. The GeM portal was launched on August 9, 2016, by the Ministry of Commerce and Industry to facilitate online procurement of common-use goods and services by government organizations.
3. The integration of GeM with the CPPP was formalized through a 2018 notification by the Department of Expenditure, which allows for the direct processing of defense-related capital acquisitions on the platform.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as GeM was launched on August 9, 2016, by the Ministry of Commerce and Industry to create an open and transparent procurement platform. Statement 1 is incorrect because GeM operates under the Ministry of Commerce and Industry, not the Ministry of Finance. Statement 3 is incorrect because the integration of GeM with CPPP does not facilitate defense-related capital acquisitions, which are handled through separate specialized procurement procedures.
Consider the following statements regarding GeM GeM-NeSL integration for digital contract management:
1. The digital contract management module on GeM incorporates the Reserve Bank of India's 2021 guidelines to permit the use of cryptocurrency-backed collateral for high-value government tenders.
2. The integration allows the Ministry of Finance to automatically deduct liquidated damages from a contractor's escrow account held within the NeSL digital ledger system.
3. Under the provisions of the 2017 GeM operational manual, the NeSL provides real-time tracking of physical goods movement from the supplier warehouse to the government buyer's site.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because the GeM-NeSL integration is primarily designed to facilitate e-Bank Guarantees (e-BGs) and digital contract execution, not to support cryptocurrency-backed collateral, which remains prohibited by the RBI. Furthermore, the integration does not grant the Ministry of Finance automated powers to deduct liquidated damages from escrow accounts, nor does NeSL provide physical logistics tracking, as its mandate is limited to digital document authentication and financial information services under the Insolvency and Bankruptcy Code.
Consider the following statements regarding Integration of GeM with Public Financial Management System (PFMS):
1. The integration between the GeM portal and the Public Financial Management System (PFMS) facilitates real-time validation of budget availability before the placement of an order.
2. The GeM portal was launched on 9 August 2016 by the Ministry of Commerce and Industry to replace the earlier Directorate General of Supplies and Disposals (DGS&D) procurement system.
3. As of the 2023-24 fiscal year, the GeM-PFMS interface supports the automated generation of payment advice for Central Ministries and Departments.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
All three statements are correct. Statement 1 is true as the GeM-PFMS integration ensures fiscal discipline by validating budget availability in real-time before order placement. Statement 2 is accurate because GeM was launched on August 9, 2016, by the Ministry of Commerce and Industry to replace the DGS&D procurement system. Statement 3 is correct as the interface enables seamless, automated payment processing for Central Ministries, reducing manual intervention and improving efficiency in public expenditure.
Consider the following statements regarding GeM vendor assessment and quality certification protocols:
1. The GeM portal operates under the administrative control of the Ministry of Finance, which oversees the annual vendor quality certification audits conducted by the Bureau of Indian Standards.
2. The 'GeM-Sellers' rating system incorporates feedback from the National Informatics Centre, which adjusts the seller's visibility index based on their performance in the 2016 pilot phase.
3. The Public Procurement Policy for Micro and Small Enterprises, notified in 2012, serves as the primary legal framework that restricts GeM sellers from participating in international tenders.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
GeM is under the Ministry of Commerce and Industry, not the Ministry of Finance, and vendor assessment is managed by the Quality Council of India (QCI) rather than the Bureau of Indian Standards. The seller rating system is based on real-time performance metrics like delivery timelines and order fulfillment, not a 2016 pilot phase or NIC feedback. Furthermore, the 2012 Public Procurement Policy for MSEs focuses on domestic reservation and does not contain provisions restricting GeM sellers from participating in international tenders.
Consider the following statements regarding GeM vendor assessment and quality certification protocols:
1. The GeM portal utilizes the 'Direct Purchase' mode for procurements up to 5 lakh rupees, a threshold revised by the Department of Expenditure in the 2021 budget circular.
2. The 'GeM-Analytics' dashboard provides real-time data on procurement trends, including the mandatory registration of all private sector companies that supply goods to state-owned enterprises.
3. The 'Paperless, Cashless, and Faceless' procurement model on GeM utilizes the Aadhaar-based e-Sign facility to authenticate the digital signatures of authorized government buyers and sellers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as GeM leverages Aadhaar-based e-Sign for secure, transparent, and faceless authentication of stakeholders. Statement 1 is incorrect because the threshold for Direct Purchase on GeM was revised to Rs. 25,000 (not 5 lakh) by the Department of Expenditure in 2021. Statement 2 is incorrect because while the GeM-Analytics dashboard tracks procurement trends, registration on GeM is mandatory for government buyers, but it is not a blanket mandatory requirement for all private sector companies unless they intend to participate in public procurement tenders.
Consider the following statements regarding GeM payment cycle and automated payment processing:
1. As of the 2023-24 fiscal update, the GeM platform has enabled over 1.5 lakh registered micro and small enterprises to receive direct digital payments from government buyers.
2. The GeM portal integrates with the Public Financial Management System to facilitate automated payments within a 10-day window after the consignee acceptance of goods.
3. The GeM Sahay initiative, launched in 2021, provides invoice-based financing to sellers by linking the GeM portal with participating banking institutions for faster liquidity.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM has significantly empowered MSMEs, with over 1.5 lakh such enterprises benefiting from direct digital payments by FY 2023-24. Statement 2 is correct because the portal's integration with the Public Financial Management System (PFMS) enables a streamlined, automated payment process, ensuring payments are processed within 10 days of consignee receipt and acceptance. Statement 3 is correct as the GeM Sahay initiative, launched in 2021, leverages the portal's data to offer invoice-based financing, allowing sellers to access credit from banks based on their GeM invoices to improve liquidity.
Consider the following statements regarding Direct Purchase vs L1 bidding mechanisms on GeM:
1. The L1 bidding mechanism on GeM automatically identifies the lowest price among technically qualified sellers to ensure cost-efficiency for public procurement.
2. Under the General Financial Rules 2017, Rule 149 allows for direct online purchases on GeM up to a value of ₹25,000 without the need for a comparative bidding process.
3. As of the 2022-23 fiscal year, the GeM platform achieved a significant milestone by crossing the ₹2 lakh crore mark in annual gross merchandise value.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM's L1 feature algorithmically filters and ranks sellers based on price and technical specifications to ensure transparency and cost-efficiency. Statement 2 is correct because Rule 149 of the General Financial Rules (GFR) 2017 mandates the use of GeM for procurement, specifically permitting direct online purchases for low-value items up to ₹25,000 without requiring comparative bidding. Statement 3 is correct as GeM officially surpassed the ₹2 lakh crore mark in Annual Gross Merchandise Value (GMV) during the 2022-23 fiscal year, reflecting its rapid adoption across government departments.
Consider the following statements regarding GeM SPV organizational structure and administrative control:
1. GeM is managed by a Special Purpose Vehicle (SPV) known as GeM SPV, which is a Section 8 company registered under the Companies Act, 2013.
2. The GeM SPV operates under the administrative control of the Department of Commerce, which falls under the Ministry of Commerce and Industry.
3. The Board of Directors of the GeM SPV includes representatives from the NITI Aayog and the Ministry of Finance to oversee its strategic direction.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
GeM is a Section 8 company established in 2017 to provide an end-to-end online marketplace for public procurement, functioning under the administrative control of the Department of Commerce, Ministry of Commerce and Industry. The SPV's governance structure is designed to ensure inter-ministerial coordination, with its Board of Directors specifically including representatives from key stakeholders like NITI Aayog and the Ministry of Finance to align procurement policies with national strategic objectives. As all three statements accurately reflect the organizational and administrative framework of the GeM SPV, they are collectively correct.
Consider the following statements regarding Integration of GeM with Public Financial Management System (PFMS):
1. The PFMS is administered by the Office of Controller General of Accounts (CGA) under the Department of Expenditure, Ministry of Finance.
2. The GeM portal operates under the administrative control of the NITI Aayog, and its integration with the PFMS was finalized during the 2014 Union Budget announcement.
3. Under the GeM-PFMS integration framework, the 'Bill Tracking System' allows vendors to monitor the status of their payments directly through the GeM dashboard.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the PFMS is indeed managed by the Office of Controller General of Accounts under the Department of Expenditure. Statement 3 is correct because the integration enables real-time payment tracking, allowing vendors to view the status of their bills directly on the GeM portal. Statement 2 is incorrect because GeM is under the administrative control of the Ministry of Commerce and Industry, and it was launched in 2016, not 2014.
Consider the following statements regarding Integration of GeM with TReDS platform for invoice discounting:
1. Micro and Small Enterprises registered on GeM can access competitive bidding from multiple financiers on TReDS platforms to obtain financing at lower interest rates.
2. The Reserve Bank of India introduced the TReDS guidelines in 2014, which serve as the regulatory foundation for the digital discounting of invoices generated on the GeM platform.
3. The integration allows the Ministry of Finance to automatically deduct the discount fee from the buyer's departmental budget, a mechanism introduced by the 2018 amendment to the General Financial Rules.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the GeM-TReDS integration enables MSMEs to leverage competitive bidding among multiple financiers to secure working capital through invoice discounting. Statement 2 is correct because the RBI issued the TReDS guidelines in 2014 under the Payment and Settlement Systems Act, 2007, to facilitate the financing of trade receivables. Statement 3 is incorrect because there is no such mechanism for the Ministry of Finance to automatically deduct discount fees from departmental budgets; instead, the discount fee is a commercial transaction cost borne by the seller or the buyer as per mutual agreement, not a government-funded budget deduction.
Consider the following statements regarding GeM availability and procurement threshold limits for ministries:
1. Direct purchase of goods up to Rs. 5 lakhs on GeM is permitted for government buyers, provided the item is available from a single seller who has maintained a positive rating for over 24 months.
2. In cases where the required goods are not available on GeM, the portal provides a 'GeM Availability Report' which allows ministries to procure from open market sources for a period of up to 90 days.
3. The GeM portal integrates the Public Financial Management System for real-time payment tracking, and it currently permits ministries to bypass the portal for procurement of specialized defense equipment exceeding Rs. 10 crores.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because direct purchase is permitted up to Rs. 25,000, not Rs. 5 lakhs, and there is no such 24-month rating mandate for single-seller procurement. Statement 2 is incorrect because the GeM Availability Report (GAR) is a mandatory requirement for offline procurement, but it does not grant a blanket 90-day window for open market purchases; procurement must follow GFR rules for each instance. Statement 3 is incorrect because while GeM integrates with PFMS, there is no provision allowing ministries to bypass the portal for defense equipment based on a Rs. 10 crore threshold; in fact, GeM has specifically launched 'GeM Defence' to facilitate such high-value strategic procurements.
Consider the following statements regarding GeM outlet and physical procurement centers:
1. The GeM Sahay app, introduced in 2021, provides collateral-free loans to MSMEs by leveraging invoice financing based on their GeM purchase orders.
2. The Government e-Marketplace (GeM) was launched on August 9, 2016, by the Ministry of Commerce and Industry to facilitate online procurement of common-use goods and services.
3. As of the 2023-24 fiscal year, the GeM portal has facilitated the procurement of goods and services exceeding the milestone of 4 lakh crore rupees since its inception.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the GeM Sahay app facilitates instant, collateral-free loans for MSMEs using invoice financing based on GeM purchase orders. Statement 2 is correct because the Ministry of Commerce and Industry launched GeM on August 9, 2016, to create an open and transparent procurement platform for government organizations. Statement 3 is correct as the GeM portal achieved a significant milestone by surpassing 4 lakh crore rupees in total Gross Merchandise Value (GMV) during the 2023-24 fiscal year.
Consider the following statements regarding GeM outlet and physical procurement centers:
1. The GeM portal incorporates the 'Womb' (GeM-Nivaran) grievance redressal system to handle disputes between buyers and sellers within a defined timeline of 30 days.
2. The GeM outlet initiative allows for the physical display and demonstration of products by registered sellers at designated government offices to enhance transparency in procurement.
3. Under the GeM SPV (Special Purpose Vehicle) framework, the portal functions as a Section 8 company under the Companies Act, 2013, to ensure operational autonomy.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM-Nivaran is the dedicated grievance redressal mechanism designed to resolve disputes within a 30-day window. Statement 2 is correct because the GeM outlet initiative facilitates physical product demonstrations to bridge the gap between digital listings and physical quality verification. Statement 3 is correct as GeM is managed by a Special Purpose Vehicle (SPV) incorporated as a Section 8 company under the Companies Act, 2013, to provide the necessary administrative and operational flexibility.
Consider the following statements regarding Integration of GeM with Public Financial Management System (PFMS):
1. The GeM portal utilizes the E-way bill data provided by the GST Network to verify physical delivery, and this mechanism was introduced in the 2018 amendment to the General Financial Rules.
2. The GeM-PFMS integration provides for the direct transfer of funds from the Reserve Bank of India to vendor accounts, bypassing the Treasury Single Account (TSA) system used by central agencies.
3. The Public Financial Management System (PFMS) was established under the Fiscal Responsibility and Budget Management Act of 2003 to oversee the GeM procurement cycle for state-level enterprises.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while GeM integrates with GSTN for invoice validation, it does not rely on E-way bills for physical delivery verification, and the GFR 2017 governs GeM, not a 2018 amendment. Statement 2 is incorrect as GeM-PFMS integration facilitates seamless payment processing within the existing government accounting framework, not by bypassing the Treasury Single Account (TSA) system. Statement 3 is incorrect because PFMS is an initiative of the Department of Expenditure, Ministry of Finance, established for tracking funds under Central Sector Schemes, and it is not a creation of the FRBM Act of 2003.
Consider the following statements regarding GeM availability and procurement threshold limits for ministries:
1. The GeM SPV is a Section 8 company established under the Companies Act, 2013, which provides for a mandatory registration fee of 1% for all central public sector enterprises using the platform.
2. For procurement between Rs. 25,000 and Rs. 5 lakhs, the GeM portal allows ministries to select the lowest-priced item from at least three different original equipment manufacturers listed on the platform.
3. The GeM portal was launched by the Ministry of Commerce and Industry in 2016, and it functions under the administrative control of the Department of Expenditure for all capital expenditure above Rs. 50 lakhs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because GeM is a non-profit Section 8 company, but it does not charge a mandatory 1% registration fee for CPSEs. Statement 2 is incorrect because the General Financial Rules (GFR) 2017 mandate that for procurements between Rs. 25,000 and Rs. 5 lakhs, buyers must select the lowest-priced item from at least three different OEMs or authorized sellers, not necessarily three different OEMs. Statement 3 is incorrect because while GeM was launched in 2016 by the Ministry of Commerce and Industry, it functions under the administrative control of the Department of Commerce, not the Department of Expenditure.
Consider the following statements regarding GeM Sahay for MSME credit facilitation:
1. The GeM Sahay app, launched in August 2021, facilitates 'invoice-based financing' for MSMEs by connecting them with lenders on the GeM platform.
2. The GeM Sahay initiative was introduced by the Ministry of Finance in 2019 to provide direct interest-free loans to MSMEs registered on the GeM portal.
3. The TReDS platform is integrated with GeM Sahay to allow MSMEs to auction their invoices to the highest bidder among participating commercial banks.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as GeM Sahay was launched in August 2021 to provide 'invoice-based financing' by enabling MSMEs to obtain instant loans against their accepted invoices on the GeM portal. Statement 2 is incorrect because the initiative was launched by the Ministry of Commerce and Industry, not the Ministry of Finance, and it facilitates credit from lenders rather than providing direct interest-free government loans. Statement 3 is incorrect because GeM Sahay is a distinct digital solution that leverages UPI-based technology for instant loan disbursal, whereas TReDS is a separate institutional mechanism for invoice discounting not integrated as the primary functional engine of GeM Sahay.
Consider the following statements regarding GeM Sahay for MSME credit facilitation:
1. The GeM Sahay facility allows vendors to access working capital loans from the Small Industries Development Bank of India based on the purchase orders issued by government buyers.
2. The GeM Sahay mobile application was developed under the Digital India initiative to offer subsidized insurance products for MSMEs against payment delays from government departments.
3. The GeM Sahay platform utilizes the Account Aggregator framework to enable lenders to access the financial data of MSMEs with their consent for faster credit assessment.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct because GeM Sahay leverages the Account Aggregator framework to securely fetch real-time financial data, enabling lenders to perform rapid credit assessments. Statement 1 is incorrect because GeM Sahay facilitates loans through various partner banks and NBFCs, not exclusively SIDBI, and is based on invoice discounting rather than just purchase orders. Statement 2 is incorrect because GeM Sahay is a credit facilitation platform for instant working capital loans, not an insurance product provider for payment delays.
Consider the following statements regarding Grievance redressal mechanism and GeM dispute resolution portal:
1. The GeM portal provides for a 30-day cooling-off period for sellers to resolve payment delays before the system automatically initiates a formal legal notice to the procuring entity.
2. The GeM grievance redressal mechanism allows for the direct intervention of the Competition Commission of India in cases where multiple vendors report price-fixing during reverse auctions.
3. The GeM dispute resolution framework includes provisions for mandatory arbitration under the Arbitration and Conciliation Act of 1996 for all transactions involving public sector undertakings.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because the GeM portal utilizes a multi-tier 'GeM Incident Management System' for dispute resolution rather than the mechanisms described. Statement 1 is false as there is no 30-day cooling-off period for automatic legal notices; instead, GeM facilitates automated payment reminders and escalation to higher authorities. Statement 2 is incorrect because the Competition Commission of India does not intervene directly in GeM auctions; such issues are handled internally by the GeM portal's monitoring tools and administrative oversight. Statement 3 is false because GeM's dispute resolution framework prioritizes administrative mediation and the 'GeM Dispute Resolution Mechanism' (GDRM) rather than mandatory arbitration under the 1996 Act for all transactions.
Consider the following statements regarding Procurement of services vs goods on GeM portal:
1. GeM has implemented a 'GeM Availability Report and Past Transaction Summary' (GARPTS) feature to assist buyers in checking the availability of goods and services before initiating an offline procurement process.
2. The GeM Sahay app, introduced in 2021, provides a facility for micro and small enterprises to obtain collateral-free loans based on their purchase orders received through the GeM portal.
3. The GeM portal supports the 'Make in India' initiative by allowing buyers to filter products based on the 'Local Content' percentage, which is verified through self-declaration by the sellers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GARPTS is a mandatory feature that helps buyers verify the availability of items on GeM before seeking an exemption for offline procurement. Statement 2 is correct because the GeM Sahay app, launched in 2021, leverages invoice financing to provide instant, collateral-free liquidity to MSMEs based on their GeM purchase orders. Statement 3 is correct as the portal mandates 'Local Content' self-declaration by sellers, enabling buyers to prioritize 'Make in India' products through specific filters in compliance with the Public Procurement (Preference to Make in India) Order.
Consider the following statements regarding Grievance redressal mechanism and GeM dispute resolution portal:
1. The GeM portal integrates with the Central Public Procurement Portal to provide a unified platform for judicial review of all government tender rejections since 2016.
2. The GeM-SPOC system allows for the automatic escalation of grievances to the National Informatics Centre if a resolution is not provided within 48 hours of filing.
3. The GeM Incident Management Policy provides for the permanent blacklisting of vendors by the GeM CEO if a grievance is filed by a buyer during the warranty period.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All statements are incorrect: Statement 1 is false because GeM is an independent procurement platform and does not serve as a judicial review body for all government tenders. Statement 2 is incorrect as the GeM-SPOC system manages procurement operations rather than serving as an automatic escalation mechanism to the NIC for grievances. Statement 3 is false because the Incident Management Policy follows a due process of show-cause notices and hearings, and blacklisting is not an automatic consequence of a buyer grievance during the warranty period.
Consider the following statements regarding Rule 149 of General Financial Rules (GFR) 2017 mandate:
1. Under Rule 149, the procurement of goods and services worth up to ₹25,000 can be made through any of the available suppliers on the GeM portal, meeting the requisite quality and delivery specifications.
2. The Department of Expenditure issued the notification for Rule 149 in 2017, which provides for the mandatory inclusion of private e-commerce retailers in the government procurement ecosystem.
3. The GeM portal incorporates an end-to-end online marketplace for the purchase of office stationery, computer peripherals, and other administrative consumables used by government organizations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as Rule 149 of GFR 2017 mandates procurement of common-use goods and services up to ₹25,000 through any available GeM supplier meeting quality and delivery requirements. Statement 3 is correct because GeM serves as a centralized, end-to-end e-marketplace for government organizations to procure administrative consumables, including stationery and IT peripherals. Statement 2 is incorrect because while the Department of Expenditure made GeM procurement mandatory for ministries and departments, it does not include private e-commerce retailers in the government procurement ecosystem; GeM is an exclusive portal for government-to-business (G2B) transactions.
Consider the following statements regarding GeM usage for primary agricultural credit societies (PACS):
1. PACS are permitted to list their locally manufactured agricultural implements on the GeM portal, a policy initiative introduced by the Department of Commerce in the 2023 budget session.
2. The integration of PACS into the GeM ecosystem is supported by the Digital India Corporation, which replaced the legacy procurement software used by cooperatives since 2017.
3. The GeM portal provides a dedicated dashboard for state-level cooperative banks to monitor the procurement patterns of PACS, following the 2020 amendment to the Multi-State Cooperative Societies Act.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because PACS are onboarded as buyers on GeM to procure goods and services rather than as sellers of implements, and this initiative was launched by the Ministry of Cooperation in 2023, not the Department of Commerce. Furthermore, the integration is facilitated by the Ministry of Cooperation in collaboration with GeM, not the Digital India Corporation, and there is no provision for a dedicated dashboard for state-level cooperative banks linked to the 2020 amendment of the Multi-State Cooperative Societies Act.
Consider the following statements regarding Direct Purchase vs L1 bidding mechanisms on GeM:
1. Direct purchase options on GeM were introduced in the 2019 procurement guidelines, allowing buyers to select vendors based on regional proximity for orders exceeding ₹5 lakhs.
2. The GeM SPV (Special Purpose Vehicle) was established in 2018 to manage the portal, and it currently provides a mandatory price-matching feature for all L1 bids above ₹10 lakhs.
3. The GeM portal operates under the administrative control of the Ministry of Finance, which oversees the L1 bidding process for all state-level procurement entities since 2017.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because direct purchase on GeM is permitted only for low-value procurements up to ₹25,000, not for orders exceeding ₹5 lakhs. Statement 2 is incorrect as the GeM SPV was incorporated in 2017, and price-matching is an optional feature for buyers rather than a mandatory requirement for all L1 bids above ₹10 lakhs. Statement 3 is incorrect because GeM operates under the administrative control of the Ministry of Commerce and Industry, not the Ministry of Finance.
Consider the following statements regarding GeM inclusion of startups and exemption from prior experience criteria:
1. The GeM portal facilitates the registration of startups under the Startup India scheme, which was formally introduced by the Ministry of Finance in January 2015.
2. The GeM portal was launched on 9 August 2016 by the Ministry of Commerce and Industry to facilitate online procurement of goods and services.
3. The Department for Promotion of Industry and Internal Trade (DPIIT) recognizes startups that are eligible for exemption from prior experience and prior turnover criteria on the GeM platform.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Startup India scheme was launched by the Ministry of Commerce and Industry in January 2016, not by the Ministry of Finance in 2015. Statement 2 is correct as the GeM portal was launched on 9 August 2016 by the Ministry of Commerce and Industry to ensure transparent and efficient public procurement. Statement 3 is correct because the DPIIT provides the necessary recognition to startups, allowing them to participate in government tenders on GeM by relaxing prior experience and turnover requirements to promote entrepreneurship.
Consider the following statements regarding Integration of GeM with TReDS platform for invoice discounting:
1. As of 2024, the GeM portal has facilitated the onboarding of multiple TReDS platforms including M1xchange, RXIL, and Invoicemart to enhance liquidity for vendors.
2. Under the current framework, the GeM portal provides an automated 'Bill Discounting' button for sellers once the consignee accepts the goods or services online.
3. The GeM-TReDS integration process utilizes the Public Financial Management System (PFMS) to verify payment status before triggering the discounting of invoices.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as GeM has integrated with RBI-regulated TReDS platforms like M1xchange, RXIL, and Invoicemart to provide MSMEs with early liquidity. Statement 2 is correct because the 'Bill Discounting' feature is triggered automatically upon digital acceptance of goods/services by the consignee, enabling seamless transition to the TReDS portal. Statement 3 is correct as the integration leverages the PFMS framework to ensure real-time verification of payment status and invoice authenticity, which is a prerequisite for financial institutions to discount the receivables.
Consider the following statements regarding GeM usage for primary agricultural credit societies (PACS):
1. The National Cooperative Development Corporation manages the GeM registration process for PACS, having transitioned from the earlier e-NAM procurement framework in 2021.
2. As of early 2024, over 60,000 Primary Agricultural Credit Societies have been identified for potential integration to access competitive pricing for their operational requirements.
3. Under the current guidelines, PACS can procure fertilizers and pesticides through the GeM portal, provided the transaction value exceeds the five-lakh rupee threshold per order.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the Ministry of Cooperation has identified over 60,000 PACS for onboarding onto the GeM portal to enhance transparency and competitive procurement. Statement 1 is incorrect because the GeM portal is managed by the GeM SPV under the Ministry of Commerce and Industry, not the NCDC, and there was no transition from e-NAM, which is a separate digital platform for agricultural produce trading. Statement 3 is incorrect because there is no minimum transaction threshold of five lakh rupees for PACS to procure goods on GeM; they are encouraged to use the portal for all their operational requirements regardless of order value.
Consider the following statements regarding GeM integration with India Post and logistics service providers:
1. The GeM portal launched its 'Logistics Integration Framework' in 2019, which provides for direct automated payments to private logistics partners through the Reserve Bank of India's NEFT system.
2. The GeM portal achieved integration with the India Post network in 2022 to facilitate last-mile delivery for government buyers in remote areas.
3. The India Post integration with GeM includes provisions for the international shipping of government procurement items, which is overseen by the Ministry of External Affairs under the 2021 trade protocol.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as GeM integrated with India Post in 2022 to leverage its vast network for last-mile delivery, especially in remote regions. Statement 1 is incorrect because the 'Logistics Integration Framework' was launched in 2022, not 2019, and payments are processed through the GeM platform's internal systems rather than direct RBI NEFT integration. Statement 3 is incorrect because the India Post-GeM partnership focuses on domestic logistics and last-mile connectivity within India, and there is no such 2021 trade protocol under the Ministry of External Affairs governing these shipments.