Federal Bank, NeML tie-up to streamline e-procurement, e-auction

Federal Bank has announced a collaboration with NCDEX e-Markets Limited (NeML) to strengthen the integration of its e-procurement and e-auction systems. NeML, a wholly owned subsidiary of National Commodity and Derivatives Exchange Limited (NCDEX), holds a commanding market share in transparent price discovery across more than 90 commodities.

The alliance is expected to facilitate an advanced e-procurement solution, streamlining processes for Central and State government organisations. Farmers can list crop details on the NeML platform, and the government will subsequently purchase the produce at the approved minimum support price (MSP), a press release said.

The integration of Federal Bank’s Host-to-Host solution with NeML’s e-procurement platform will ensure a seamless and efficient payment processing system, it said, besides enabling a robust price-discovery mechanism for various commodities.

The key advantages include nationwide participation, improved price discovery, and safeguarding against cartel formations, allowing participants to enhance their bid value as per market scenarios.

The salient features of the collaborative endeavour are: End-to-end digital execution of payments and collections; a plug-and-play solution tailored for government clients; simplified one-time documentation process for 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.