Union Minister of Consumer Affairs, Food and Public Distribution today launched the Web Portal of Warehousing Development and Regulatory Authority (WDRA) & “Electronic Negotiable Warehouse Receipt (e-NWR) System”.
Aims at simplifying the Warehouse Registration Rules, digitizing the entire process of registration, monitoring and surveillance as well as creation and management of Negotiable Warehouse Receipts (NWRs) in electronic form through two repositories.
Negotiable warehouse receipts
NWRs are documents issued by warehouses to depositors against commodities deposited in warehouses for which warehouse is bailee. They are transferred by endorsement and delivery i.e. either original depositor or holder in due course (transferee) can claim commodities from the warehouse.
NWRs can be traded, sold, swapped and used as collateral to support borrowing or loans from banks. These receipts were made negotiable under Warehouse (Development and Regulation) Act, 2007 and are regulated by Warehousing Development and Regulatory Authority (WDRA).
e-NWR will have no chances of any tempering, mutilation, fudging, loss or damage and also no possibility of any multiple financing. Hence, it will not only facilitate an easy pledge financing by banks and other financial institutions but also smooth trading on various trading centres like commodity exchanges, electronic National Agriculture Markets (e-NAM) and other electronic platforms. e-NWR will also help to save expenditure in logistics as stocks could be traded through multiple buyers without physical movement and can be evenly split for partial transfer or withdrawal.