If you registered as a seller on the Government e-Marketplace (GeM) and paid Caution Money, you may now be eligible to get that deposit back. With GeM’s updated Revenue Policy, Caution Money has been discontinued for new sellers, and existing sellers can withdraw their previously paid deposit directly from their dashboard. This guide breaks down the entire GeM Caution Money refund process in simple steps, so you can claim your funds without confusion or delay.
What is GeM Caution Money?
Caution Money is a one-time refundable security deposit that GeM sellers paid at the time of registration. It was meant to filter out non-serious sellers and build trust in government procurement. For example, a small manufacturer with turnover under ₹1 crore typically paid ₹5,000, while a larger enterprise with turnover above ₹10 crores paid up to ₹25,000.
This deposit was never a fee. It always belonged to the seller and was simply held by GeM as a security measure. Under the latest policy update, GeM has removed this requirement entirely for new registrations and allows existing sellers to reclaim their previously deposited amount.
Who Can Apply for a Caution Money Refund?
Not every seller needs to go through deregistration to get this refund anymore. You are eligible if:
- You registered on GeM before the Caution Money discontinuation and paid the deposit
- Your seller account is active and in good standing
- You have a verified bank account linked to your GeM profile
- You have no pending dues, penalty deductions, or unresolved buyer complaints
Step-by-Step Process to Apply for GeM Caution Money Refund
Step 1: Log in to Your GeM Seller Account
Go to the official GeM portal and log in using your registered seller credentials. Make sure you are accessing your seller dashboard, not the buyer login.
Step 2: Verify Your Bank Account
Before initiating the refund, check that your bank account is added, verified, and marked as the primary account in your seller profile. For example, if your bank details were updated recently, allow some time for PFMS verification to complete before proceeding, as an unverified account will block the refund.
Step 3: Navigate to Manage Caution Money Account
From your dashboard, click on the “Manage Caution Money Account” section. This is where all your deposit and withdrawal options are available.
Step 4: Click on Recalculate Threshold
Select the “Recalculate Threshold” option. This step lets the system calculate how much of your deposited amount is now in excess, based on the updated policy where Caution Money is no longer mandatory.
Step 5: Select Withdraw Excess Funds
Once the threshold is recalculated, click “Withdraw Excess Funds” to formally initiate your refund request. There is no separate form or document upload needed for this step in most cases.
Step 6: Track Your Refund Status
After submitting the request, you can track the status under the Account Balance and Status section of your Caution Money dashboard. Approved refunds are typically credited within 24 hours to a few business days, directly to your verified bank account.
Common Reasons Your Refund May Get Delayed
| Issue | What It Means | How to Fix It |
|---|---|---|
| Bank account not verified | PFMS verification is incomplete | Re-add bank details and wait for verification before retrying |
| Account not marked primary | Multiple bank accounts linked, none set as default | Mark the correct account as primary in your seller profile |
| Pending dues or penalties | Outstanding charges adjusted against deposit | Clear dues first, then reinitiate the refund request |
| Technical glitch on portal | Account visible but withdrawal option not working | Take a screenshot and raise a Helpdesk ticket |
Tips to Avoid Refund Delays
- Always double-check your bank account details before initiating the withdrawal
- Avoid raising multiple refund requests for the same amount, as it can cause processing confusion
- Keep your acknowledgment or transaction reference number safe for follow-up
- If your refund does not reflect within the expected timeline, raise a ticket through the GeM helpdesk rather than waiting indefinitely
Frequently Asked Questions:
1. Is GeM Caution Money still required for new sellers?
No. Under the latest GeM Revenue Policy, new sellers registering on the portal are not required to pay any Caution Money.
2. Can I withdraw my Caution Money without closing my seller account?
Yes. Unlike the earlier process, you no longer need to deregister your account. You can withdraw the excess deposit directly through the Manage Caution Money Account section while staying active on GeM.
3. How long does the refund take to process?
Once your bank account is verified and the request is approved, the amount is usually credited within 24 hours to a few business days.
4. What happens if my bank account is not visible during withdrawal?
This usually means your account is not added, not verified, or not marked as primary. Add and verify your bank details, then try again after some time.
5. Will I lose my Caution Money if I have pending dues?
Any pending dues or penalty deductions are adjusted against your deposit before the remaining amount is refunded.
6. Who do I contact if my refund is delayed?
You can call the GeM helpdesk or raise a support ticket through the official GeM portal for any refund-related issue.
Need Help With GeM Compliance?
Navigating GeM policies, deposits, and refunds can be confusing, especially with frequent updates to the portal’s rules. If you need assistance with GeM registration, compliance, or refund tracking, our team at BizWithTech is here to help.
Contact us today to get expert support for your GeM seller journey.
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