Memorandum of Understanding signed between WDRA and PNB to facilitate finance against e-NWRs
By PIB Delhi
To facilitate farmers and traders in providing low interest rate loans, Warehousing Development Regulatory Authority(WDRA) exchnaged a Memorandum of Understanding (MoU) with the Punab National Bank (PNB) in the presence of Sh. T.K Manoj Kumar, Chairperson, WDRA, Sh. Mukesh Kumar Jain, Member, WDRA, Sh. Atul Kumar Goel, MD&CEO, PNB, Sh. Sunil kumar Chug, CGM, PNB and other senior officers of WDRA and PNB.
The MoU was signed with the intent of promoting awareness about finance against e-NWRs (electronic Negotiable Warehouse Receipt) with features such as, no additional collateral and attractive interest rates. The MoU is aimed at providing information to depositors of the benefits, besides doing further outreach activities to improve agricultural pledge finance in India.
It is envisaged that the product will have far reaching consequences with regard to acceptance of e-NWRs among small and marginal farmers. It has the potential to make significant impact on the finances of rural depositors by preventing distress sale and releasing better prices for the produce.
Combined with the inherent security and negotiability of the e-NWR system, the Produce Marketing Loan will go a long way in improving rural liquidity and increasing farmers income.
During the event, a presentation was made by WDRA on the importance of post-harvest pledge financing using warehouse receipts for improving rural credit. Bank officers from up country locations joined on video-conferencing mode. The bank representatives also highlighted the risks faced by the lending institutions in this sector. WDRA assured their full regulatory support in improving the fiduciary trust among stakeholders.
