The State Bank of India has signed an MoU with Warehousing Development and Regulatory Authority (WDRA) to promote loans against electronic Negotiable Warehouse Receipts (e-NWR), issued by WDRA-registere d warehouses.
The MoU will improve pledge finance against e-NWRs and promote warehouse registrations with WDRA. SBI, in association with WDRA, will provide financing and organize farmer awareness and capacity-building programs for farmers to manage and operate the services offered by e-NWR, effectively.
The bank has taken this step to encourage a seamless flow of farm credit to individual farmers against pledge/hypothecation of agricultural produce and leveraging the inherent safety of e-NWRs issued by the warehouses registered and regulated by WDRA. To increase liquidity in rural areas, the State Bank of India has launched Produce Marketing Loan (PML) for farmers to be issued against e-NWRs by WDRA-registered warehouses.
Dinesh Khara, Chairman, SBI, and TK Manoj Kumar, Chairman, WDRA signed the MoU on Monday at the SBI Corporate office, Nariman Point. The signing ceremony was also attended by senior dignitaries from SBI and WDRA.
Dinesh Khara said, “Our focus is to uplift 60% of the Indian population engaged in farming by enabling them through our value-added offerings. We will provide all the necessary aid to the agricultural sector by increasing their financing options.”