Money & Banking

Central Bank signs MoU with NCDEX

M. Somasekhar Hyderabad | Updated on March 12, 2018 Published on October 19, 2013




Central Bank of India has entered into a memorandum of understanding with NCDEX Spot Exchange (NSPOT), the e-market place for farmers. The objective is to cater to the needs of the farmers, agri processors and market participants.

A tri-partite agreement was signed by Central Bank of India, NSPOT and two collateral managers viz. Navjyoti Commodities and Origo Commodities in AP and Karnataka States.

Central Bank of India is the first Bank to provide this type of facility to the farmers in these two States.

Speaking on the occasion, N. K. Balakrishnan, Field General Manager said the bank’s association with NSPOT will promote easy finance to farmers against their stock and will also bring in transparency and efficiency in lending operations benefiting farmers, traders, SMEs etc.

Under this agreement, the customers desirous of storing their produce for better price realisation can avail this facility of loan. They would deposit their goods in NSPOT accredited warehouses and the banks would provide loans against the deposited goods. When the goods are sold, the proceeds directly go to the banks.

Central Bank has 309 branches in these two states with a total business of Rs 29,300 crore.

NSPOT is a wholly owned subsidy of NCDEX – a leading commodities exchange in agri. commodities, ferrous metals and steel in India. This platform is now accessed by more than 40,000 farmers on daily basis under this e-mandi programme.

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Published on October 19, 2013
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