Guides · EMD and money
What is EMD and how much is it on a GeM bid?
EMD, earnest money deposit, is the refundable security a bidder puts up so that bids are serious; it is returned to unsuccessful bidders and adjusted or released for the winner after the performance security is in place. On GeM the amount is stated in each bid document — there is no single rate — and many bids exempt micro and small enterprises and recognised startups.
What it is for
A buyer asks for earnest money so that a bidder who withdraws, or who wins and does not sign, forfeits something. It is not a fee: it comes back to every bidder who loses, and to the winner once the contract's performance security replaces it.
How much
- The bid document states the amount. It is set by the buyer for that bid, usually in proportion to the estimated value; the same product can carry a different EMD in two bids.
- Where the buyer has waived EMD, the bid says "EMD not required" or shows no amount.
- iBid.Win shows the EMD on every bid page when the mirror carries it, and shows "not declared" rather than guessing when it does not.
How it is paid
GeM's bid document specifies the mode: through the portal's payment options, or a bank guarantee in the buyer's favour, within the timelines the bid states. Keep the proof with the bid.
Who is exempt
Micro and small enterprises with a Udyam certificate and DPIIT-recognised startups are exempt on most bids, and the bid document confirms it. See How do I get an EMD exemption?.
Frequently asked
Is EMD refunded if I lose the bid?
Yes. Unsuccessful bidders get their EMD back after the award; the bid document states the timeline.
Is EMD the same as performance security?
No. EMD is the bid-stage security. Performance security, often a bank guarantee, is furnished by the winner after award and released after the contract is performed.
Can EMD be a percentage of my quote?
It is set against the buyer's estimate, not your quote, and fixed in the bid document before bids open.
Last checked 08 September 2026. Written from GeM's published process and this platform's own rules; the bid document and the GeM portal are the authority on any date or amount.