eNWR Lending: Finance Ministry Urges Banks to Join NCGTC and eKUN
Why in the news
To widen farm credit, the finance ministry in April 2025 pushed banks to lend against stored produce through electronic negotiable warehouse receipts (eNWRs).
Key facts
- Platforms: NCGTC and the eKUN portal, part of the Jansamarth platform.
- Uptake: 8 banks on NCGTC; 26 on eKUN.
- eNWR loans carry a credit guarantee covering credit risk and warehouseman risk.
| Borrower | Limit under latest RBI norms |
|---|---|
| Individual farmers | ₹90 lakh (earlier ₹75 lakh) |
| FPOs, corporate farmers, cooperatives | ₹4 crore |
Directions
- Public sector banks must nudge regional rural banks to adopt eNWR loan policies and join both platforms.
- Promote eNWR lending via branch outreach, social media and community drives.
Bank suggestions
- Charge the guarantee fee once at disbursal, as under CGTMSE norms.
- Add more WDRA-accredited warehouses.
Implications
- Strengthens pledge-based agri-finance and curbs distress sales after harvest by using produce as collateral.
Exam angle
- Terms: eNWR, NCGTC, eKUN, WDRA, CGTMSE.
- Limits: ₹90 lakh and ₹4 crore.