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With respect to the Negotiable Warehouse Receipts (NWRs), consider the following statements:
1. The Warehousing Development and Regulation Act provides for the issuance of the NWRs to enable the farmers to store agricultural commodities in the warehouses.
2. The loans given by the banks by taking the NWRs as collateral are considered as Priority Sector Loans.
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 respect to the Negotiable Warehouse Receipts (NWRs), consider the...
Legal Framework: The Warehousing (Development and Regulation) Act (The WDR Act), 2007, provides for the issuance of the Negotiable Warehouse Receipts (NWRs) by the warehouses registered under this Act. Regulation: The WDR Act has also established the Warehousing Development and Regulatory Authority (WDRA). It functions under the Ministry of Consumer Affairs, Food and Public Distribution.
Benefits of the Negotiable Warehouse Receipts for the farmers: Store perishable commodities + Use collateral for short-term borrowing + Direct sale of the commodities under the new farm acts + Scientific storage + Reduce post-harvest losses. Recent Progress: The Ministry of Agriculture has enabled the integration of the NWRs with the E-NAM portal.
RBI's Announcement: Enhance the loan limit from Rs. 50 lakhs to Rs. 75 lakhs per borrower, against the pledge of agricultural produce, backed by the NWRs/(e-NWRs), issued by the warehouses registered and regulated by the WDRA. 
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Community Answer
With respect to the Negotiable Warehouse Receipts (NWRs), consider the...
1. Statement 1:
- The Warehousing Development and Regulation Act indeed provides for the issuance of Negotiable Warehouse Receipts (NWRs) to enable farmers to store agricultural commodities in warehouses.
- NWRs are issued by accredited warehouses against the commodities deposited by the farmers and can be used as collateral for obtaining financial assistance from banks.

2. Statement 2:
- Loans given by banks against NWRs are considered as Priority Sector Loans.
- This is because lending against NWRs helps in providing credit to farmers, which is an essential component of the priority sector lending targets set by the Reserve Bank of India.
Therefore, both statements 1 and 2 are correct. The issuance of NWRs under the Warehousing Development and Regulation Act facilitates easier access to credit for farmers and promotes agricultural growth in the country.
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With respect to the Negotiable Warehouse Receipts (NWRs), consider the following statements:1. The Warehousing Development and Regulation Act provides for the issuance of the NWRs to enable the farmers to store agricultural commodities in the warehouses.2. The loans given by the banks by taking the NWRs as collateral are considered as Priority Sector Loans.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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With respect to the Negotiable Warehouse Receipts (NWRs), consider the following statements:1. The Warehousing Development and Regulation Act provides for the issuance of the NWRs to enable the farmers to store agricultural commodities in the warehouses.2. The loans given by the banks by taking the NWRs as collateral are considered as Priority Sector Loans.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? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With respect to the Negotiable Warehouse Receipts (NWRs), consider the following statements:1. The Warehousing Development and Regulation Act provides for the issuance of the NWRs to enable the farmers to store agricultural commodities in the warehouses.2. The loans given by the banks by taking the NWRs as collateral are considered as Priority Sector Loans.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? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With respect to the Negotiable Warehouse Receipts (NWRs), consider the following statements:1. The Warehousing Development and Regulation Act provides for the issuance of the NWRs to enable the farmers to store agricultural commodities in the warehouses.2. The loans given by the banks by taking the NWRs as collateral are considered as Priority Sector Loans.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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