With Punjab & Sind Bank (PSB), the Warehousing Development Regulatory Authority (WDRA) has established a vital cooperation aimed at strengthening agricultural financing and empowering farmers and traders. The partnership aims to facilitate access to low-interest loans through the utilization of electronic Negotiable Warehouse Receipts (e-NWRs). The Memorandum of Understanding (MoU) between WDRA and PSB was formalized on February 5, 2024, at the head office of PSB.
The exchange of the MoU was conducted by T.K. Manoj Kumar, Chairperson of WDRA, and Swarup Kumar Saha, MD&CEO of PSB. The event witnessed the presence of notable figures including Dr. Ram Jass Yadav and Ravi Mehra, Executive Directors of PSB, alongside Naveen Barolia, Dy. Director (M&C), and Sai Pradeep Gopisetty, Asst. Director (SA&O) from WDRA.
Objective of the MoU
The primary objective of this collaboration is to raise awareness about funding opportunities against e-NWRs among depositors. By disseminating information about the benefits of e-NWRs, the MoU seeks to enhance agricultural pledge finance across India. Additionally, both entities aim to conduct extensive outreach activities to further promote this initiative.
PSB's Loan Offerings
Under this partnership, PSB is set to offer loans against e-NWRs with minimal collateral requirements and competitive interest rates. For the agriculture sector, loans of up to Rs. 75 lakh will be extended, while borrowers from other categories can avail loans of up to Rs. 5 crores.
Focus on Post-Harvest Pledge Financing
During the signing event, WDRA delivered a comprehensive presentation emphasizing the significance of post-harvest pledge financing utilizing e-NWRs. This approach is expected to play a pivotal role in enhancing rural credit accessibility. Furthermore, representatives from PSB highlighted the challenges encountered by lending institutions in this domain.
WDRA assured its unwavering regulatory support to bolster trust among stakeholders and address these challenges effectively.
