In a recent Circular dated 12th March, 2019 issued by the Warehousing Development and Regulatory Authority (“Authority”), the Authority has advised warehousemen of registered warehouses to do away with issuing Negotiable Warehousing Receipts ( NWRs) in physical form and effective 1st June, 2019 to only issue electronic Negotiable Warehouse Receipts (e-NWRs).
Background: Rule 27 of the Warehousing (Development and Regulation) Registration of Warehouses Rules, 2017 states as follows:
- With effect from such date as may be specified by the Authority, no warehouseman shall issue any negotiable warehouse receipts in physical form, and shall register with one or more repositories registered with the Authority for issuing negotiable warehouse receipts in electronic form. [ Emphasis Supplied]
- The Authority shall provide sufficient time to the warehouseman to comply with the requirements of this rule.
In compliance with Rule 27, the Authority has observed that as the repository systems are functioning smoothly with a good number of e-NWRs issued till now. As such the Authority has decided that w.e.f. 1st June, 2019, no warehouseman will issue any Negotiable Warehouse Receipt in physical form. Instead they will need to get onboarded with one or more repositories registered with the Authority and must issue Negotiable Warehouse Receipt only in electronic form.
[ As per the Circular we have been informed that two Repositories, namely M/s CDSL Commodity Repository ltd (CCRL) and M/s National e-Repository Ltd (NeRL), registered with the WDRA have become operational after launch of e-NWR on 26th September, 2017].
Source : Warehousing Development and Regulatory Authority
