What is EMD (Earnest Money Deposit) on GeM

EMD is a refundable deposit some GeM bids require from participating sellers, meant to demonstrate genuine bidding intent and discourage frivolous or non-serious bids.

Not every transaction on GeM requires EMD — it typically applies to bid participation rather than simple direct purchase — but where it does apply, it needs to be arranged and submitted correctly before your bid is considered valid.

This is one area where MSME status genuinely matters financially: sellers with correctly linked Udyam registration are generally eligible for exemption from EMD requirements, which is a meaningful working-capital advantage over non-exempt competitors.

Losing your EMD isn't just a financial setback — it can also affect your standing on the portal, so it's worth understanding a bid's specific terms and conditions before committing, not just after.

Frequently Asked Questions