NCDEX Group today said it has entered into a new venture National E-Repository Ltd (NERL) to provide repositories services for electronic negotiable warehouse receipts, which farmers can use to avail bank loan.
The announcement was made immediately after the government today unveiled the electronic negotiable warehouse receipts (eNWRs) instead of manual receipts for the benefit of farmers.
In a statement, NERL CEO Kedar Deshpande said the company will be responsible for creation, storage, security, authenticity and transfer of all eNWRs within a regulated framework between users of the repository.
"NERL s services will transform commodities into a financial asset in the hands of farmers and the value chain, improve financial liquidity in rural areas, lower the cost of financing, and ensure better price risk management," NCDEX MD and CEO Samir Shah said.
NERL is promoted by NCDEX (National Commodity & Derivatives Exchange Limited), National Bank for Agriculture and Rural Development (NABARD), ICICI Bank and SBI.
It is the second company after Central Depository Services Ltd (CDSL) to get permission by the Warehousing Development and Regulatory Authority (WDRA) to provide warehouse depository services.
According to NCDEX, banks have started funding against pledge of warehouse receipts in a big way. The current size of the warehouse receipts market is estimated at about Rs 40,000 crore and negotiable warehouse receipts at Rs 5,000 crore.
The potential for finance against collateral of major agricultural commodities and fertilisers is Rs 1,66,234 crore, it added.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)