The State Bank of India has entered into a tie-up with NCDEX Spot Exchange Ltd, a leading agri commodity exchange, and LTC Commercial Co, a collateral management service provider, for lending farmers against the security of warehouse receipts.
This tie-up would enable both SBI and its borrowers to access market through NSPOT's electronic portal in real time for the best possible price discovery, creation of charge on pledged commodities and monitoring of loans, a statement said.
With this initiative, SBI would reach out to more farmers for post harvest credit delivery, quickly and more efficiently.
This Memorandum of Understanding was signed on August 5 by Manju Agarwal, Chief General Manager, Rural Business, State Bank of India, Rajesh Sinha, CEO of NSPOT and Rajesh Sharma, MD of LTC Commercial Co, in presence of V Eswaran, General Manager (Agri Business), State Bank of India.
