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With reference to the Electronic Negotiable Warehousing Receipt(NWR), consider the following statements:
- It can be auctioned if the loan is not repaid by the farmers.
- The Warehousing Development and Regulatory Authority regulates the entire operation under NWR.
Which of the statements given above is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to theElectronic Negotiable Warehousing Receipt(NWR), c...
The correct answer to the given question is option 'C' which states that both statements 1 and 2 are correct. Let's understand why this is the correct answer:
1. It can be auctioned if the loan is not repaid by the farmers:
The Electronic Negotiable Warehousing Receipt (NWR) is a financial instrument that represents ownership of commodities stored in a warehouse. It provides farmers with a receipt for the goods they have deposited in the warehouse, which can be used as collateral to avail loans from banks or other financial institutions. If the farmer fails to repay the loan, the bank or financial institution has the right to auction the goods stored in the warehouse to recover the loan amount. Therefore, statement 1 is correct.
2. The Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR:
The Warehousing Development and Regulatory Authority (WDRA) is a statutory body established under the Warehousing (Development and Regulation) Act, 2007. Its primary role is to regulate and promote the warehousing sector in India. WDRA is responsible for the registration and regulation of warehouses, accreditation of warehouses, and monitoring the functioning of Electronic Negotiable Warehousing Receipts (e-NWRs). It ensures that the operations under NWR are conducted in a transparent and efficient manner, protecting the interests of farmers, traders, and other stakeholders. Therefore, statement 2 is correct.
In conclusion, both statements 1 and 2 are correct. The Electronic Negotiable Warehousing Receipt (NWR) can be auctioned if the loan is not repaid by the farmers, and the Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR.
1. It can be auctioned if the loan is not repaid by the farmers:
The Electronic Negotiable Warehousing Receipt (NWR) is a financial instrument that represents ownership of commodities stored in a warehouse. It provides farmers with a receipt for the goods they have deposited in the warehouse, which can be used as collateral to avail loans from banks or other financial institutions. If the farmer fails to repay the loan, the bank or financial institution has the right to auction the goods stored in the warehouse to recover the loan amount. Therefore, statement 1 is correct.
2. The Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR:
The Warehousing Development and Regulatory Authority (WDRA) is a statutory body established under the Warehousing (Development and Regulation) Act, 2007. Its primary role is to regulate and promote the warehousing sector in India. WDRA is responsible for the registration and regulation of warehouses, accreditation of warehouses, and monitoring the functioning of Electronic Negotiable Warehousing Receipts (e-NWRs). It ensures that the operations under NWR are conducted in a transparent and efficient manner, protecting the interests of farmers, traders, and other stakeholders. Therefore, statement 2 is correct.
In conclusion, both statements 1 and 2 are correct. The Electronic Negotiable Warehousing Receipt (NWR) can be auctioned if the loan is not repaid by the farmers, and the Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR.
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With reference to theElectronic Negotiable Warehousing Receipt(NWR), c...
Recently, Punjab National Bank (PNB) and Warehousing Development & Regulatory Authority (WDRA) signed an agreement to promote financing against e-NWR (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.
- The Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR.
- 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.
Hence both statements are correct.
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With reference to theElectronic Negotiable Warehousing Receipt(NWR), consider the following statements: It can be auctioned if the loan is not repaid by the farmers. The Warehousing Development and Regulatory Authorityregulates the entire operation under NWR.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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