Electronic Negotiable Warehousing Receipt (e-NWR)

March 18, 2023

Recently, Punjab National Bank (PNB) and Warehousing Development & Regulatory Authority (WDRA) signed an agreement to promote financing against e-NWR (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).