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NCDEX gets into warehouse e-repository services, launches NERL

The announcement was made immediately after the government unveiled the electronic negotiable warehouse receipts

Press Trust of India  |  New Delhi 

NCDEX
NCDEX

Group on Tuesday said it has entered into a new venture National E-Repository (NERL) to provide repositories services for electronic negotiable warehouse receipts, which farmers can use to avail loan.

The announcement was made immediately after the unveiled the electronic negotiable warehouse receipts (eNWRs) instead of manual receipts for the benefit of farmers.

Chief Executive Officer 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," MD and CEO Samir Shah said.

is promoted by (National Commodity & Derivatives Exchange Limited), National for Agriculture and Rural Development (NABARD), ICICI 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. 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, September 27 2017. 01:37 IST
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