Karnataka Bank has entered into an Memorandum of Understanding (MoU) with National Collateral Management Services Limited (NCMSL) for warehouse receipt financing and collateral management services etc.
The Bank is financing against the go down receipts / cold storage receipts issued by NCMSL under the Bank’s “KBL - Krishik Bhandar Scheme” at an attractive interest rate.
Generally, during harvesting season, the price of the agri produce will be at a lower level. Hence, the farmers can store their agri produce in the godowns / cold storages of NCMSL.
In the off season, the farmers can sell the produce in the market at a higher price. Hence, the farmers will be benefited by availing finance under this scheme. The NCMSL will also ensure insurance coverage in respect of risks such as fire, burglary, earthquake, riots, malicious damage, war and flood, etc.
General Manager of the Bank Mahabaleshwar M S and NCMSL Chief Business Officer Shyamal Gupta signed the MoU.
Deputy General Manager V N Manohar, Assistant General Manager Mahalingeshwara and Manager (Agriculture) Ramesh Vaidya were present.