NCDEX ties-up to bring institutional financing to farmers, traders

NCDEX, the leading commodity exchange has brought financing from leading banks to the depositors of goods in warehouses approved by the exchange. The exchange has recently tied up with Kotak Mahindra Bank to promote financial inclusion through an electronic pledge facility that will enable farmers and traders to use their commodities stored in an approved warehouse as collateral for availing financial assistance.

Under the agreement between the exchange and these banks, customers desirous of availing financial assistance can deposit their goods in exchange approved warehouses and the banks providing pledge finance will provide loans using the deposited goods as collateral.

NCDEX has developed a unique electronic accounting system known as COMTRACK for facilitating maintenance of record of commodities held by the participants in the approved warehouses for the purpose of delivery on the exchange platform. This state-of-the-art system, not only tracks the movement of goods in the warehouse ecosystem of the exchange, but also gives a transparent single window view to the lenders.