GeM Caution Money Discontinued: What Changed and How to Get Your Refund
By GeMSignal · Updated · 4 min read
Many guides online still say you must pay caution money before bidding on GeM. That is out of date: GeM removed the requirement in August 2025. Here is what it was, what changed, and how sellers who already paid can get their money back.
What was GeM caution money?
Caution money was a refundable, turnover-linked deposit that sellers and service providers had to maintain before participating in bids and reverse auctions. It was meant to discourage non-serious bidders who won orders and failed to supply, and it could be forfeited for violations of GeM's terms.
It was separate from the Earnest Money Deposit (EMD) that individual bids may require — and EMD still exists.
What changed in 2025
As part of the reforms announced on GeM's ninth foundation day in August 2025, GeM discontinued the caution money requirement for sellers and service providers, alongside rationalising vendor assessment fees and reducing transaction charges. The aim was to lower the entry barrier for small sellers.
How to withdraw caution money you already paid
The exact menu labels can change, but the flow reported by sellers is:
- Log in to your seller account on gem.gov.in.
- Open your dashboard and go to the caution money section (Manage Caution Money Account).
- Make sure a bank account is added, PFMS-verified and set as primary — refunds go to that account.
- Request the withdrawal and track it from the same screen.
- If it doesn't arrive, call the GeM helpline (1800-419-3436 / 1800-102-3436) or raise a ticket.
What still costs money on GeM
Registration remains free. EMD may still apply on individual bids (eligible MSEs and startups are often exempt), and vendor assessment or transaction charges can apply in specific cases. See our GeM fees guide.
Note: GeMSignal is a private service and is not affiliated with the Government e-Marketplace. Rules, thresholds and fees change — always verify on the official portal at gem.gov.in.