RBI -Increase in limits for bank lending against Negotiable Warehouse Receipts (NWRs) / electronic Negotiable Warehouse Receipts (eNWRs)

Last updated: 08 April 2021

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The Reserve Bank of India (RBI) has announced an increase in the loan limits for banks lending against Negotiable Warehouse Receipts (NWRs) and electronic Negotiable Warehouse Receipts (eNWRs). This change aims to encourage greater credit flow to farmers by raising the Priority Sector Lending (PSL) limit from ₹50 lakh to ₹75 lakh per borrower for loans against NWRs/eNWRs. The limit for loans against other types of warehouse receipts remains at ₹50 lakh per borrower.

Reserve Bank of India RBI/2021-22/14 FIDD.CO.Plan.BC.No.7/04.09.01/2021-22 April 7, 2021 The Chairman / Managing Director/ Chief Executive Officer [All Commercial Banks including Regional Rural Banks, Small Finance Banks, Local Area Banks and Primary (Urban) Co-operative Banks other than Salary Earners Banks] Dear Sir/Madam Priority Sector Lending (PSL) -Increase in limits for bank lending against Negotiable Warehouse Receipts (NWRs) / electronic Negotiable Warehouse Receipts

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FAQ :

The limit for bank lending against Negotiable Warehouse Receipts (NWRs) and electronic Negotiable Warehouse Receipts (eNWRs) has been increased to ₹75 lakh per borrower.

The previous limit for bank lending against NWRs/eNWRs was ₹50 lakh per borrower.

No, the increased limit of ₹75 lakh applies specifically to NWRs/eNWRs. The limit for bank lending against other types of warehouse receipts remains at ₹50 lakh per borrower.

This increase is intended to ensure greater flow of credit to farmers and encourage the use of NWRs/eNWRs issued by regulated warehouses.

These bank loans against agricultural produce, including warehouse receipts, are for a period not exceeding 12 months.

Notification No : RBI/2021-22/14 FIDD.CO.Plan.BC.No.7/04.09.01/2021-22
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12068&Mode=0#:~:text=With%20a%20view%20to%20ensure,for%20loans%20against%20NWRs%2FeNWRs

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