Credit guarantee fund on drawing board for building warehouses

Earlier this year, the Reserve Bank of India increased the limits for bank lending against negotiable warehouse receipts (NWRs) or electronic NWRs to Rs 70 lakh from Rs 50 lakh per borrower to ensure increased flow of credit to farmers against the pledge or hypothecation of agricultural produce, and encourage greater use of NWRs and e-NWRs issued by regulated warehouses as a preferred instrument for farmers availing such finance.