National WareHousing Reciepts

GS Paper III Indian Economy

Context:

The Warehousing Development and Regulatory Authority (WDRA) under the Department of Food and Public Distribution held a conference on e-NWR (National Warehousing Reciepts) based pledge finance with Regional Rural Banks (RRBs).

More about the News:

Negotiable Warehouse Receipt (NWR): It enables farmers to store their produce for safe and scientific storage and preservation in warehouses near their farms and to seek pledge loan from banks against the NWRs issued against deposit of their stock.
e-NWR: The NWR in electronic form issued as an electronic Negotiable Warehouse Receipt (e-NWR) which has negotiability and can be used for deposit and withdrawal of commodities as well as trade transactions such as transfer and Pledge.

The conference was held to create awareness amongst the RRBs about the ecosystem of WDRA and benefits of pledge finance through e-NWR.
All the RRBs were requested to onboard with WDRA repositories so that they can start lending through electronic- negotiable warehouse receipts (e-NWR).
RRBs were urged to enter into MOUs with WDRA to promote pledge finance just as other banks such as SBI, PNB and Federal Bank have done.
WDRA has digitized its operations since 2017 and WDRA’s e-NWR is the first digitized negotiable warehouse receipt in India.
RRBs were requested to be a part of the Digital Gateway being created by WDRA in partnership with NABARD aimed at reducing pledge processing time and improving the ease of doing business.

Warehousing Development and Regulatory Authority(WDRA):

WDRA was set up by the Government of India to ensure implementation of the provisions of the Warehousing (Development & Regulation) Act, 2007.
Objective: The main objective of WDRA is to implement Negotiable Warehouse Receipt (NWR) System in the country.
Functions: To make provisions for the development and regulation of warehouses which includes negotiability of warehouse receipts, registration of warehouses, promotion of scientific warehousing of goods, improving fiduciary trust of depositors and banks, enhancing liquidity in rural areas and promoting efficient supply chain.

News Source: PIB