National E-Repository Limited (NERL), an NCDEX group company and a WDRA (Warehousing Development and Regulatory Authority) regulated entity has facilitated loans worth more than Rs 2,000 crore against electronic Negotiable Warehouse Receipts (eNWR) as on date.

The first loan disbursed or pledge financed against eNWR on the NERL platform was in March 2018. NERL manages and facilitates the usage of eNWR across 13 states and one union territory. eNWR enables linkages to various electronic platforms like eNAM, NCDEX, NeML for trade. Currently, 40 national, regional and local banks are offering loans against eNWR across the country.

Kedar Deshpande, MD & CEO, NERL said “This will pave the way to bring liquidity/finance and trade at a warehouse level. The ecosystem has the potential to enable the government to track the private stock available in the country and take informed decisions for market intervention. Meanwhile, banks being a regulated entity, would also prefer to work with WDRA regulated warehouses to reduce their credit risks, as the collateral that needs to be pledged is stored in these warehouses.”

This year regulators, banks and the government encouraged the use of eNWRs for financing stored commodities in WDRA registered warehouses. eNWR is bringing liquidity and trade at a warehouse level for helping farmers, FPOs and other market intermediaries.