GeM caution money was a refundable, account-level security deposit some sellers had to hold with the Government e Marketplace to keep participating in bids. It no longer applies. As of GeM's General Terms and Conditions v1.29, caution money is exempted for all sellers irrespective of turnover, a change GeM announced in August 2025 around its ninth anniversary. If you registered before that and still see an old deposit, this guide covers what it used to be and how to get it back.
Search results and older guides across the web still describe caution money as a live GeM requirement with turnover-based slabs. That information is stale. Sellers registering on GeM today do not pay caution money at all, and sellers who paid it in the past can withdraw it from their seller dashboard. Here is what changed and what to do if you are holding an old deposit.
Caution money is abolished — what changed and when
GeM's current General Terms and Conditions (v1.29, in force since 25 March 2026) state plainly that the caution money deposit is exempted for all sellers, regardless of turnover. This removed a requirement that used to apply in slabs tied to a seller's turnover on the platform. The exemption was announced in August 2025, alongside other seller-friendly changes GeM made around its ninth anniversary.
Practically, this means two things for a seller. If you are registering on GeM now, you will not be asked to pay caution money at any point in onboarding or bidding — it simply does not appear. If you registered earlier and already paid it, the requirement to keep holding it has lapsed, and the deposit is now withdrawable.
What caution money used to be, for context
Before the exemption, caution money was a portal-level safeguard, separate from EMD and performance security. EMD guaranteed a single bid, performance security guaranteed a single awarded contract, and caution money guaranteed a seller's general conduct across the marketplace, set in slabs tied to turnover: reported historic slabs were roughly ₹5,000 for turnover under ₹1 crore, ₹10,000 for ₹1–10 crore, and ₹25,000 above ₹10 crore, though GeM revised these over time. None of that applies to new registrations today, and this history is included only so sellers understand what an old deposit on their account was for.
How to withdraw an old caution money deposit
If you paid caution money before the exemption took effect, log in to your GeM seller account and check your account or wallet section for a caution money balance. GeM's seller dashboard provides a withdrawal route for deposits that are no longer required to be held, since the underlying requirement has been removed for everyone. Follow the withdrawal flow shown against your own account rather than assuming a fixed process, since dashboard options can be labelled slightly differently depending on when you registered.
Keep your bank details verified on your GeM profile before you initiate a withdrawal, since a mismatch is the most common reason a refund gets held up. If you cannot locate a caution money balance or withdrawal option on your dashboard, raise it with GeM support through the helpline and support options on gem.gov.in, referencing the caution money exemption in the current GTC.
What this means for new and existing sellers
For a business registering on GeM today, this is one less cost and one less step to plan for: seller registration and onboarding are free, and caution money is not part of that anymore. For an existing seller, treat any caution money sitting in your account as money you can now reclaim rather than a standing requirement — check your dashboard, withdraw it, and move on.
This does not affect EMD or performance security (ePBG), which are separate, bid-specific and contract-specific requirements that still apply as stated in each tender or award.
Frequently asked questions
Is GeM caution money still required?
No. Under GeM’s General Terms and Conditions v1.29, caution money is exempted for all sellers irrespective of turnover. GeM announced this change in August 2025. New sellers are not asked to pay it, and existing sellers who paid it earlier can withdraw the deposit.
How do I withdraw an old GeM caution money deposit?
Log in to your GeM seller account and check your account or wallet section for a caution money balance, then use the withdrawal option shown there. Keep your bank details verified on your profile so the refund is not held up by a mismatch. Contact GeM support if you cannot locate the option.
What were the old GeM caution money slabs?
Before the August 2025 exemption, caution money was set in slabs tied to a seller’s turnover on the platform — historically reported as roughly ₹5,000 for turnover under ₹1 crore, ₹10,000 for ₹1–10 crore, and ₹25,000 above ₹10 crore. These slabs no longer apply to any seller.
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