Which Bank has entered into an agreement with CDSL Commodity Repository…
2018
Which Bank has entered into an agreement with CDSL Commodity Repository Limited (CCRL) and is the first Public Sector Bank to become the Repository Participant for Pledge Finance under the Repository Ecosystem for registered/accredited warehouses by WDRA?
Answer: D. Bank of Baroda — ConceptA commodity repository is a WDRA-regulated electronic platform that records ownership of goods stored in accredited warehouses as electronic Negotiable…
- A.
Bank of India
- B.
State Bank of India
- C.
Union Bank of India
- D.
Bank of Baroda
- E.
Punjab National Bank
Attempted by 4 students.
Show answer & explanation
Correct answer: D
Concept
A commodity repository is a WDRA-regulated electronic platform that records ownership of goods stored in accredited warehouses as electronic Negotiable Warehouse Receipts (eNWRs). A bank that registers as a 'Repository Participant' can lend against these eNWRs (pledge finance), letting a farmer or trader raise credit on stored produce without physically moving it.
Application
CDSL Commodity Repository Limited (CCRL) is one of the WDRA-licensed commodity repositories, promoted by CDSL. In May 2018 (22 May 2018) the bank named below signed an agreement with CCRL to onboard as a Repository Participant for pledge finance. Among public sector banks it was the first to do so, opening eNWR-backed lending to warehouse depositors under this ecosystem.
Therefore the bank that became the first Public Sector Bank to act as a Repository Participant with CCRL is Bank of Baroda.
Cross-check
The qualifier in the stem is 'first Public Sector Bank' — so the answer must be a government-owned bank, and it must be tied specifically to the CCRL (CDSL) repository, not a different repository operator.
Bank of Baroda's tie-up with CCRL was widely reported in May 2018 banking current affairs, which matches the IBPS 2018 exam window.