FinMin Urges Banks to Expand Farm Credit Through Digital Platforms

The Union Finance Ministry has directed banks — including public sector, private sector, regional rural, and cooperative banks — to step up their engagement with platforms that support farm credit expansion. Banks have been asked to register with the National Credit Guarantee Trustee Company (NCGTC) and the e-Kisan Upaj Nidhi (e-KUN) portal.

These platforms facilitate lending against electronic negotiable warehouse receipts (e-NWRs), allowing farmers to leverage stored produce as collateral for loans. Officials said this initiative aims to enhance access to formal credit for farmers and agri-businesses.

So far, eight banks have enrolled with NCGTC, while 26 banks have signed up for the e-KUN portal, which is integrated into the broader Jansamarth portal designed to promote ease of credit access.

The government hopes that greater participation from banks will improve rural liquidity, strengthen the farm economy, and reduce reliance on informal lending sources.