FedBank to fund agri commodity futures trading
Federal Bank has launched a scheme for financing delivery-based futures trading in agricultural commodities.
By TNN |
KOCHI: Alwaye-based Federal Bank has launched a scheme for financing delivery-based futures trading in agricultural commodities. To begin with, the bank would introduce the scheme in select branches in the Kerala.
The scheme, which would be of benefit to farmers, cooperatives and corporates, was launched by Forward Markets Commission chairman BC Khatua. Under the scheme, customers can get loan up to 85% of the futures selling price. Besides this, the bank has mark to market funding and funding of the initial margin.
The scheme will benefit farmers who require funds, and at the same time want to sell in the future market to get the benefit of higher prices, said Federal Bank chairman M Venugopalan. The scheme will be extended to other states soon, he said.
Small and medium farmers can benefit from the scheme through their registered societies which would be capable of taking positions with commodity exchanges. The commodity has to be kept in exchange-approved warehouses and the warehouse receipts could be in physical and demat form.
Federal Bank has also launched its gold trading scheme. With RBI giving its consent for the bank to import bullion and sell it in wholesale and retail markets, the bank has launched retail trade on Friday. The bank would sell imported gold coins of 5 gms, 8 gms and 20 gms called “Federal Bank Pure Gold Scheme”.
The scheme, which would be of benefit to farmers, cooperatives and corporates, was launched by Forward Markets Commission chairman BC Khatua. Under the scheme, customers can get loan up to 85% of the futures selling price. Besides this, the bank has mark to market funding and funding of the initial margin.
The scheme will benefit farmers who require funds, and at the same time want to sell in the future market to get the benefit of higher prices, said Federal Bank chairman M Venugopalan. The scheme will be extended to other states soon, he said.
Small and medium farmers can benefit from the scheme through their registered societies which would be capable of taking positions with commodity exchanges. The commodity has to be kept in exchange-approved warehouses and the warehouse receipts could be in physical and demat form.
Federal Bank has also launched its gold trading scheme. With RBI giving its consent for the bank to import bullion and sell it in wholesale and retail markets, the bank has launched retail trade on Friday. The bank would sell imported gold coins of 5 gms, 8 gms and 20 gms called “Federal Bank Pure Gold Scheme”.
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