Memorandum of Understanding signed between WDRA and PNB to facilitate finance against e-NWRs
To facilitate
farmers and traders in providing low interest rate loans, Warehousing
Development Regulatory Authority (WDRA) exchanged a Memorandum of Understanding
(MoU) with the Punab National Bank (PNB) in the presence of TK Manoj
Kumar, Chairperson, WDRA, Mukesh Kumar Jain, Member, WDRA, Atul Kumar Goel, MD &
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.