Credit Guarantee Scheme for e-NWR based Pledge Financing

Credit Guarantee Scheme for e-NWR based Pledge Financing

Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) launched.

  • Purpose: Allows farmers to avail loans against electronic Negotiable Warehouse Receipts (e-NWRs) after depositing their commodities in Warehousing Development and Regulatory Authority (WDRA) accredited warehouses.
  • Ministry: Ministry of Consumer Affairs, Food & Public Distribution.
  • Coverage: Loans up to Rs. 75 lakhs for agricultural purposes and up to Rs. 200 lakhs for non-agricultural purposes.
  • Eligible Institutions: All scheduled banks and cooperative banks.
  • Eligible Borrowers: Small and marginal farmers, women, SC/ST/PwD farmers, MSMEs, traders, FPOs, and farmer cooperatives.
  • Risks Covered: Credit and warehouseman risks.
  • Guarantee Coverage:
    • 85% for loans up to Rs. 3 lakhs.
    • 80% for loans between Rs. 3 to 75 lakhs for small and marginal farmers/women/SC/ST/PwD.
    • 75% for other borrowers.
  • A digital version of the traditional warehouse receipt, governed by the Warehousing (Development and Regulation) Act of 2007.
  • Function: Allows goods deposited in a registered warehouse to be transferred or sold through endorsement.
  • A statutory body under the Warehousing (Development & Regulation) Act, 2007.
  • Key Functions: Regulating warehouses, promoting scientific storage, boosting supply chain efficiency.

Source: PIB


Previous Year Question

Consider the following statements:
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?

[UPSC Civil Service Exam – 2020 Prelims]

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (b)


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