New Delhi, Feb 10 (KNN) In a concerted effort to bolster support for farmers and traders through accessible financing, the Warehousing Development Regulatory Authority (WDRA) and Punjab & Sind Bank (PSB) have formalized a Memorandum of Understanding (MoU).

Under the terms of this collaboration, PSB will extend loans against electronic Negotiable Warehouse Receipts (e-NWRs) without necessitating collateral, offering them at attractive interest rates.

The core objective of this strategic partnership is to heighten awareness regarding financing opportunities against electronic Negotiable Warehouse Receipts (e-NWRs).

These receipts, facilitated by the NWR system, enable farmers to securely store their produce at warehouses situated near their farms. Moreover, farmers can leverage these receipts to obtain loans from banks against their stored stock.

Farmers stand to benefit from loans amounting to Rs 75 lakh, while borrowers from other categories within the agriculture sector can access loans up to Rs 5 crore.

The e-NWR, issued digitally by the regulatory body WDRA, allows farmers to engage in financial transactions and trade without the need for physical exchange of goods. Through outreach endeavours, the MoU aims to further fortify agricultural pledge finance initiatives in India.

WDRA has additionally committed to providing comprehensive regulatory support to foster trust among stakeholders, thereby ensuring the seamless execution of this initiative.

(KNN Bureau)