New Delhi: In a significant move to bolster financial support for farmers and traders, the Warehousing Development Regulatory Authority (WDRA) signed a Memorandum of Understanding (MoU) with Punjab & Sind Bank (PSB) on February 5, 2024. The MoU exchange ceremony took place at the head office of PSB, where Shri T.K. Manoj Kumar, Chairperson of WDRA, and Sh. Swarup Kumar Saha, MD&CEO of PSB, formalized the partnership.
The event witnessed the presence of key dignitaries, including Dr. Ram Jass Yadav and Sh. Ravi Mehra, Executive Directors of PSB, and Sh. Naveen Barolia, Deputy Director (M&C), and Sh. Sai Pradeep Gopisetty, Assistant Director (SA&O), representing WDRA.
The primary objective of the MoU is to promote awareness and facilitate low-interest rate loans against electronic Negotiable Warehouse Receipts (e-NWRs). This collaborative effort aims to educate depositors about the benefits of e-NWRs while conducting outreach activities to enhance agricultural pledge finance in India.
Punjab & Sind Bank, as part of this partnership, will offer loans against e-NWRs without the requirement of collateral, providing an attractive rate of interest. Under the agriculture sector, loans up to Rs. 75 lakh will be extended, while borrowers in other categories can avail loans up to Rs. 5 crores.
During the ceremony, WDRA conducted a comprehensive presentation emphasizing the significance of post-harvest pledge financing through e-NWRs for rural credit improvement. Representatives from PSB shed light on the challenges faced by lending institutions in this sector. WDRA assured its complete regulatory support to enhance fiduciary trust among stakeholders and facilitate smoother operations.
This collaboration marks a pivotal step towards ensuring financial inclusivity for the agricultural community, fostering economic growth, and addressing the unique challenges faced by farmers and traders. The synergy between WDRA and Punjab & Sind Bank is expected to pave the way for a more robust and accessible financial ecosystem for the agricultural sector in India.
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