Public-sector bank, Central Bank of India has reportedly signed a memorandum of understanding (MoU) with NCDEX Spot Exchange (NSPOT) to cater the needs of the farmers, agri processors and market participants in Andhra Pradesh and Karnataka. Under this agreement, the bank will give loan against agri-commodities as collateral to farmers and processors in Andhra Pradesh and Karnataka. Central Bank of India is the first Bank to provide this type of facility to the farmers in these two States.
As per the agreement, customers keen to avail this facility will have to deposit their goods in NSPOT accredited warehouse and the banks would provide loans against the deposited goods. When the goods are sold, the proceeds directly go to the banks. After retaining their share of liability the remaining amount is transfer to the farmers account.
Central Bank of India has been serving more than 3,50,00,000 account holders through its 4,118 branches, 6 extension counters, 29 Satellite offices, 1,970 ATMs and 2,413 ultra small branches (USBs).
