The Warehousing Development Regulatory Authority (WDRA) signed a memorandum of understanding with Punjab and Sind Bank (PSB) to facilitate farmers and traders in providing low interest rate loans.
The MoU was signed with the intent of promoting awareness to fund against e-NWRs (electronic Negotiable Warehouse Receipt).
It is aimed to provide information to depositors of the benefits, besides doing further outreach activities to improve agricultural pledge finance in India, Ministry of Consumer Affairs said in a statement.
PSB is offering loans against e-NWRs with no collateral and attractive rate of interest. Under agriculture sector, upto Rs. 75 lakh and for other category borrowers, upto Rs. 5 crores loans are extended, it added.
During the event, a presentation was made by WDRA on the importance of post-harvest pledge financing using e-NWRs for improving rural credit.
The bank representatives also highlighted the challenges faced by the lending institutions in this sector. WDRA assured their full regulatory support in improving the fiduciary trust among stakeholders.
MoU was exchanged by TK Manoj Kumar, Chairperson, WDRA, and Swarup Kumar Saha, MD & CEO, Punjab & Sind Bank.
The event was attended by Dr. Ram Jass Yadav, ED, PSB, Ravi Mehra, ED, PSB. Naveen Barolia, Dy. Director (M&C), Sai Pradeep Gopisetty, Asst Director (SA&O) from WDRA were also present.