Memorandum of Understanding signed between Warehousing Development Regulatory Authority and Punjab & Sind Bank (PSB) to facilitate low-interest rate loans to farmers
No Additional collateral and attractive interest rates
To facilitate farmers and traders in providing low-interest rate loans, the Warehousing Development Regulatory Authority (WDRA) signed a Memorandum of Understanding (MoU) with the Punjab & Sind Bank (PSB).
MoU was exchanged by Shri T.K. Manoj Kumar, Chairperson, WDRA, Sh. Swarup Kumar Saha, MD&CEO, PSB in the head office of PSB on 05.02.2024. This event is attended by Dr. Ram Jass Yadav, ED, PSB, Sh. Ravi Mehra, ED, Punjab & Sind Bank from PSB and Sh. Naveen Barolia, Dy. Director (M&C), Sh. Sai Pradeep Gopisetty, Asst. Director (SA&O) from WDRA.
The MoU was signed with the intent of promoting awareness funds against e-NWRs (electronic Negotiable Warehouse Receipts). The MoU is aimed to provide information to depositors about the benefits, besides doing further outreach activities to improve agricultural pledge finance in India.
Punjab & Sind Bank is offering loans against e-NWRs with no collateral and an attractive rate of interest. Under the agriculture sector, up to Rs. 75 lakh and for other category borrowers, up to Rs. 5 crores loans are extended.
During the event, a presentation was made by WDRA on the importance of post-harvest pledge financing using electronic Negotiable Warehouse Receipts (e-NWRs) to improve 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.
Disclaimer: This is an official press release by Pib.
