What is UVAM (Unified Vendor Approval Module)
UVAM (Unified Vendor Approval Module) is a mandatory, system-driven vendor verification framework implemented on the GeM (Government e-Marketplace) ecosystem to ensure that only genuine, traceable, and compliant sellers are allowed to transact with Government buyers.
In plain compliance terms, UVAM is not a registration formality—it is a due-diligence and identity validation mechanism designed to eliminate shell vendors, benami accounts, and proxy sellers from Government procurement.
Under UVAM, every seller is digitally verified using PAN, Aadhaar, bank account, GST (where applicable), and business constitution data, with real-time cross-validation from Government databases.
Once a seller is UVAM-approved, the approval becomes portable across Government platforms, reducing repeated KYC and strengthening procurement integrity.
Why UVAM Was Introduced (Regulatory Intent)
The Government introduced UVAM to address long-standing compliance risks in public procurement, such as:
Fake or non-existent firms bidding for tenders
Multiple vendor IDs controlled by the same entity
Mismatch between bidder identity and bank/payment beneficiary
Difficulty in fixing accountability in fraud or dispute cases
UVAM directly plugs these gaps by enforcing single-source identity verification before a vendor can participate in Government buying.
This aligns with India’s broader Digital Governance, DBT traceability, and anti-fraud policy framework.
Why UVAM Is Mandatory for Government Vendors
UVAM is mandatory because Government procurement is a public trust function, not a private marketplace transaction. The compliance rationale is clear:
1. Legal Identity Authentication
Government departments must ensure that payments are released only to legally identifiable persons/entities. UVAM links:
Business PAN
Aadhaar of authorised person
Verified bank account
This ensures end-to-end accountability.
2. Financial Risk Control
Without UVAM:
Payments could be routed to third-party or mule accounts
Recovery in fraud cases becomes impossible
UVAM ensures that the bidder, beneficiary, and legal entity are the same.
3. Prevention of Benami & Proxy Vendors
UVAM blocks:
Duplicate firms using different trade names
One individual operating multiple vendors
Use of employee or relative accounts
This protects genuine MSMEs from unfair competition.
4. Uniform Vendor Due-Diligence
Earlier, each department followed its own vendor checks. UVAM creates one standard Government-wide approval, reducing ambiguity and audit objections.
What Happens If a Vendor Does Not Complete UVAM?
From a compliance standpoint, consequences are strict:
Vendor account remains inactive or restricted
Inability to participate in bids or accept orders
Payments may be withheld or blocked
Existing listings can be disabled
High risk of account suspension during audits
In short: No UVAM = No Government Business
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