Federal Bank joins NeML to streamline payment processes for farmers
By Gloria Mathias
Federal Bank has announced a pivotal collaboration with NCDEX eMarkets Limited (NeML) to fortify the integration of eProcurement and eAuction systems.
NeML, a wholly owned subsidiary of National Commodity & Derivatives Exchange Limited (NCDEX), holds a commanding market share in transparent price discovery across more than 90 commodities.
This strategic alliance is set to facilitate an advanced eProcurement solution, streamlining the processes for Central and State Government organisations. Under this initiative, farmers can seamlessly list crop details on NeML’s platform, and the government will subsequently purchase them at the approved Minimum Support Price (MSP).
The integration of Federal Bank’s host-to-host with NeML’s eProcurement platform ensures a seamless and efficient payment processing system for these critical government transactions. In addition, NeML’s eAuction solution brings significant benefits to the Government of India by providing a robust price-discovery mechanism for various commodities.
The key advantages of this system include nationwide participation, improved price discovery, and safeguarding against possible cartel formations, ensuring a fair chance for participants to enhance their bid value as per market scenarios.
- End-to-end digital execution of payments and collections
- A plug-and-play solution tailored for government clients
- Simplified one-time documentation process with clients
- Automated reconciliation of each remittance within NeML’s web portal
- Customizable payment advice to each beneficiary against the payout
- There are no additional charges or costs involved.
This collaborative effort underscores the Federal Bank’s unwavering commitment to innovation and transparency in financial services, aligning seamlessly with NeML’s stringent governance and compliance standards.
Federal Bank is transforming itself, keeping its principles intact, into an organisation that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress.
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