GeM EMD Refund Process: A Complete Step-by-Step Guide for Sellers

If you sell products or services on the Government e-Marketplace (GeM), you’ve likely come across the term EMD (Earnest Money Deposit) while participating in bids.

The EMD is a refundable deposit that shows your seriousness as a bidder and protects buyers from defaults. But once the bidding process is over, many sellers wonder — how do I get my EMD back?

This guide will walk you through the complete EMD refund process on GeM, explain common issues that delay refunds, and share tips to ensure you get your money back quickly.

What is EMD in GeM?#

Earnest Money Deposit is a temporary security amount that sellers pay while participating in certain GeM bids or tenders. It acts as a financial guarantee that you won’t withdraw or default after being declared the L1 (lowest) bidder.

If you meet all bid conditions and don’t violate any GeM guidelines, the EMD is 100% refundable after bid completion.

When is EMD Required on GeM?#

Not all tenders on GeM require an EMD. It depends on the buyer’s conditions. Generally, EMD is applicable when:

The bid value exceeds a specific limit.
The buyer includes an EMD clause in the Bid Terms and Conditions.
The seller isn’t exempt under MSME or Startup provisions.

Tip: Always read the bid document carefully before participating to check whether EMD applies.

Step-by-Step Guide: GeM EMD Refund Process#

Step 1: Bid Evaluation Completion#

Once the buyer completes bid evaluation and finalizes results, GeM automatically marks the winning seller (L1). For all non-winning sellers, the EMD refund process begins immediately after bid closure.

Step 2: Auto-Initiation by GeM#

Refunds are auto-initiated by GeM through PFMS (Public Financial Management System). Sellers don’t need to raise any manual request — the system starts the process automatically.

Step 3: Bank Verification#

Refunds are credited to the same bank account used during payment. If your bank details on GeM are incorrect or outdated, the refund may fail. Always ensure your bank details are updated in your GeM profile.

Step 4: Refund Timeline#

Typically, refunds are processed within 7–15 working days after bid closure and verification. Processing time may vary depending on the payment gateway and bank involved.

Step 5: Check Refund Status#

You can easily track your EMD refund status:

Go to your GeM Dashboard → Bids → Participated Bid

Or check your bank statement once the refund is credited.

Common Reasons for EMD Refund Delays#

Incorrect or inactive bank details on GeM
Pending bid closure or incomplete buyer-side evaluation
Technical issues in PFMS or payment gateway
Penalties, blacklisting, or default under GeM rules

Quick Check: If your EMD refund hasn’t been received within 15 days, verify your bid status and payment details on GeM.

When is EMD Not Refunded?#

You may lose your EMD if:

You withdraw from the bid after submission
You fail to supply goods/services after being declared L1
You violate bid terms, contract conditions, or GeM policies

Always participate only in bids you can confidently fulfill — it saves time, effort, and your deposit.

EMD Exemption on GeM#

Many sellers, especially MSMEs and Startups, are eligible for EMD exemption. This is a major advantage if you meet the criteria.

You can claim exemption if you’re registered under:

Udyam / Udyog Aadhaar (for MSMEs)
DPIIT-recognized Startups
KVIC or NSIC

Upload valid certificates while submitting your bid to claim the exemption successfully.

Conclusion#

The GeM EMD refund process is smooth, transparent, and fully automated — provided your bank details and bid records are accurate. By understanding how the system works, sellers can avoid refund delays and maintain healthy cash flow.

At Bidz365, we help businesses succeed on GeM — from registration and vendor assessment to bid management, tender strategy, and payment assistance.

If you want to simplify your GeM operations and ensure faster results, our experts are here to help.

Get Expert Help with GeM#

Want to simplify bidding and refund tracking?