Electronic Negotiable Warehousing Receipt

About Electronic Negotiable Warehousing Receipt:

• The negotiable warehouse receipt (NWR) system was launched in 2011 allowing the transfer of ownership of a commodity stored in a warehouse without having to deliver it physically.
• These receipts are issued in negotiable form, making them eligible as collateral.
• This has been enabled by enabling the financing of warehouse receipts through the Warehouse (Development and Regulation) Act, of 2007.
• The Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR. 

What is e-NWR?

• An e-NWR is available only in electronic form.
• The single source of information for the e-NWR is the repository system where e-NWR is issued by registered warehouses.
• Confidentiality, integrity and availability of the e-NWR information are provided by the Repository system. 
• All e-NWRS can be traded through off-market or on-market Commodity Exchanges platforms. 
• An e-NWR can be auctioned under certain conditions such as loan not repaid, on expiry and delivery not taken, and on likely damage or spoilage of the commodity in the warehouse. 
• e-NWR can be transferred fully or in part.

Key facts about Warehousing Development and Regulatory Authority (WDRA)

• WDRA was constituted in 2010 under the Warehousing (Development and Regulation) Act, of 2007. 
• It is under the Department of Food and Public Distribution (DFPD).

Q1) What is the main objective of WDRA?

The main objective of WDRA is to implement Negotiable Warehouse Receipt (NWR) System in the country, which would help farmers to store their produce in scientific storage godowns near by their farms and to seek loan from banks against their NWR.

Source: PNB signs deal with warehousing body for financing against e-NWR