Q. Consider the following statements regarding Credit Guarantee under electronic negotiable warehouse receipts (e-NWRs)
1.It facilitates lending against e-NWRs, which allow farmers to use stored produce as collateral for loans.
2.The loan against e-NWRs falls under Priority Sector Lending (PSL).
Which of the statements given above is/are correct?
Explanation: Both Statements are correct
Statement 1 is correct: Union finance ministry has asked public, private, regional rural, and cooperative banks to sign up for the National Credit Guarantee Trustee Company (NCGTC) and the e-Kisan Upaj Nidhi (e-KUN) portal. These platforms support lending against electronic negotiable warehouse receipts (e-NWRs), which allow farmers to use stored produce as collateral for loans.
Statement 2 is correct: The Reserve Bank of India (RBI) recently increased e-NWR-backed loans under priority-sector lending from Rs.75 lakh to Rs.90 lakh for individual farmers, and for farmer producer organizations, corporate farmers, and cooperatives engaged in agricultural activities from Rs.75 lakh to Rs.4 crores.
Source: BS
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