 "Punjab & Sind Bank, WDRA agreement to offer low-interest loans for farmers")
In a move to support farmers and traders with low-interest rate loans, the Warehousing Development Regulatory Authority (WDRA) and Punjab & Sind Bank (PSB) have signed a Memorandum of Understanding (MoU).
The primary objective of the MoU is to raise awareness about funding against electronic Negotiable Warehouse Receipts (e-NWRs). The NWR system enables farmers to store the produce safely and scientifically at warehouses near their farms. It also allows farmers to receive loans from banks using the issued NWRs against their deposited stock. The e-NWR is a digital receipt that is issued by the regulatory body, WRDA. The eNWR can be used by farmers to finance and trade in settlements without physically exchanging goods. The MoU, therefore, will further enhance agricultural pledge finance in India through outreach activities.
Under this partnership, PSB will offer loans against e-NWRs with no requirement for collateral and "attractive interest rates". Farmers can avail loans of up to Rs 75 lakh, while borrowers from other categories can access loans of up to Rs 5 crore under the agriculture sector.
The MoU exchange took place between TK Manoj Kumar, Chairperson of WDRA, and Swarup Kumar Saha, MD&CEO of PSB, at the head office of PSB on February 5, 2024. It was signed in the presence of Dr Ram Jass Yadav and Ravi Mehra, Executive Directors of PSB, along with Naveen Barolia, Dy Director (M&C), and Sai Pradeep Gopisetty, Asst Director (SA&O), from WDRA.
WDRA has also pledged full regulatory support to enhance trust among stakeholders, ensuring the smooth functioning of the initiative.