PNB signs deal with warehousing body for financing against e-NWR

Partnership will give farmers information about negotiable instrument meant to assist rural economy

Punjab National Bank (PNB) and Warehousing Development & Regulatory Authority (WDRA) signed on Monday an agreement to promote financing against e-NWR (Electronic Negotiable Warehousing Receipt).

The partnership will give farmers information about e-NWR, a negotiable instrument, and undertake outreach activities to improve agricultural pledge finance in India.

The Reserve Bank of India (RBI) two years ago increased the limit for loans against NWRs/eNWRs from Rs 50 lakh to Rs 75 lakh per borrower. The central bank aimed to encourage credit to farmers against receipts issued by warehouses registered and regulated by state-owned WDRA.

The e-NWR financing prevents distress sale by