₹1,000 Crore Credit Guarantee for e-NWR Pledge Financing
Why in the news
A ₹1,000 crore credit guarantee scheme for loans against e-NWRs was announced to spread electronic warehouse receipts in farm markets, along with the e-KUN programme.
Key facts
- e-KUN (e-Kisan Upaj Nidhi) offers low-interest loans against e-NWRs so farmers avoid distress selling, under the Digital India Mission.
- India has about 1 lakh warehouses, of which 40,000 are public; WDRA has registered 5,000, but only 2,500 are linked to e-NWR issuance through NeRL or Countrywide Commodity Repository.
- Expected e-NWR lending via NeRL: about ₹4,000 crore this fiscal, up 33% from ₹3,000 crore.
- Low NPAs suggest lending is secure.
PSL limits
| Category | Limit |
|---|---|
| Earlier e-NWR PSL limit | ₹50 lakh |
| Raised by RBI to | ₹75 lakh |
| NeRL request for FPOs | ₹2 crore |
| NeRL request for traders | ₹4 crore |
NeRL profile
- National e-Repository Limited (NeRL) is strongest in Gujarat, Rajasthan, MP, Maharashtra, Tamil Nadu, AP and Telangana, with expansion planned.
- Other shareholders include NABARD, ICICI and SBI.
- About 40% of revenue comes from NCDEX exchange depositors (1.5 lakh tonnes); non-NCDEX clients accounted for 8.5 lakh tonnes in the first nine months of FY25.
Significance
- Warehouse-based finance can ease dependence on traditional loans for farmers, traders and FPOs.
- Higher PSL limits and NeRL growth strengthen the e-NWR lending ecosystem.
Exam angle
- e-NWR: electronic Negotiable Warehouse Receipt; regulator WDRA.
- PSL limit: ₹50 lakh to ₹75 lakh.
- Scheme size: ₹1,000 crore.