BENEFITS OF eNWR
The warehouse ecosystem is responsible for the issuance of eWR (negotiable and non-negotiable) on the NeRL platform and for ensuring the quality of the underlying commodity are maintained.
The cost of transacting in a Repository environment is considerably lower with electronic Negotiable Warehouse Receipts (eNWR) as compared to physical Warehouse Receipts and it comes with a host of benefits as below.
- No additional cost for collateral monitoring and surveillance
- Easy transfer and splitting of electronic warehouse receipts
- Transparency of transactions
- Centralized Online recordkeeping
- Robust Commodity & Warehousing Risk Management system and processes
- Standardization and Scientific Management of Warehouses and Stored Commodities.
- Easy finance at lower interest rates
Electronic Negotiable Warehouse Receipts Vs. Physical Receipts
Paper Based WR/ Stock Receipt
- Can be shared with prospective buyer in a one to one mode only
- Cannot be split
- Prone to loss, mutilation, tampering, fudging of WR information
- Inherent difficulties in efficient clearing and trading in a transparent manner
- Difficult to share vital information of the WR with multiple stakeholders
- No uniformity of information in the receipt
- Not regulated
- Assaying is not mandatory
- Risk of issuing of WR without receiving goods
- Risk of issuing a duplicate WR without following the procedure
- Fraudulent overstatement of the value of goods is possible
- No monitoring and surveillance
- Problems in valid transferability of goods in case of transfer/ endorsements due to trades without legal negotiability in the warehouse receipts
- Higher litigations in case of non-regulated warehouses
Electronic Negotiable Warehouse Receipts
- Helps farmers / depositors to have access to a large number of buyers nationwide with better bargaining powers
- eNWRs can be split with an obligation to even transfer only a part of the commodity
- No possibility of any such eventuality
- Promotes an efficient clearing, settlement and delivery system with transparency in trading of agricultural produce
- It’s easy to share vital information of the eNWR with multiple stakeholders like bankers, commodity exchanges, government, etc.
- Standard format as prescribed under the Act and Regulation
- Regulated by a statutory Authority
- Reporting the quality of goods in eNWR is mandatory
- Possibility ruled out
- Possibility ruled out
- Agmark.net prices are retrieved
- Regularly monitored by WDRA
- Being electronic in nature, multiple transfers are easy and with due backing of W(D&R) Act 2007
- Litigation shall be greatly reduced due customer grievances mechanism of WDRA