National E-Repository Ltd (NERL), the eNWR (electronic negotiable warehouse receipt) issuer promoted by the National Commodity and Derivatives Exchange, has roped in Punjab & Sind Bank to disburse loans against its eNWR.
Punjab & Sind Bank is the 45th bank to lend against eNWRs issued by NERL .
eNWR is a digital form of warehouse receipt generated by repositories like NERL, which is regulated by the Warehousing Development and Regulatory Authority of India.
eNWRs are held in unique repository accounts with NERL, which is similar to holding funds in bank accounts. Transfer of eNWR ownership is through a simple digital repository account transfer.
This reduces the risks associated with paperwork, as also the cost of transacting.
Transparent tool
Ravi Mehra, General Manager, Punjab & Sind Bank, said eNWR has potential to become a powerful financial instrument, offering greater transparency and confidence to bankers as compared with physical receipts.
Vineet Gupta, Head-Business (North & Central India), NERL, said national-level banks were showing trust in this instrument.
State Bank of India, ICICI Bank, Bank of Baroda, Central Bank of India and Punjab National Bank are among the lenders disbursing loans against an eNWR generated on the NERL platform.
Over ₹3,000 crore worth of loans have been disbursed on the NERL platforms as of June-end. Over 6,700 accounts have been opened with NERL, including over 2,000 farmer accounts and more than 200 belonging to farmers producer organisations. Over 42 lakh tonnes of commodity deposits have been made on the NERL platform.