India-based Karnataka Bank has signed a memorandum of understanding (MOU) with National Collateral Management Services (NCMSL) for warehouse receipt financing and collateral management services.

Under the MOU, Karnataka will finance its transactions against the cold storage receipts issued by NCMSL under its Krishik Bhandar scheme, which pays a 14% interest rate.
NCMSL will also ensure insurance coverage in respect of risks such as fire, burglary, earthquake, riots, malicious damage, war and floods.

Indian storage firm NCMSL has warehouses across India and stores crops such as grains, pulses, oil seeds, commercial crops, spices, and plantation crops.