Ware house receipt financing is witnessing transition of developmental phases. Initially it was started with godowns deposit receipts / bills and physical ware house receipts authenticated by collateral managers. Subsequently it was converted in electronic form of ware house receipts. It is financing against the inventory deposit at godowns by way of pledge of ware house receipts. Banking institutions are lending with margin ranges from 25 to 40 % against ware house receipts.  When any of borrower i.e. manufacturer / processor, trader or farmers needs to sale the commodity, loan amount has to be paid to bank for the release of pledged commodities. Government of India established Warehouse development regulation Authority (WDRA) by passing Warehousing (Development and regulation) act 2007 act in parliament. Ware house development regulatory authority (WDRA) introduced negotiable warehouse receipts. That can be transferred from one owner to second owner like banking cheque.  Two companies are nominated for implementation of NWR (negotiable ware house receipts) through WDRA i.e. national e-repository limited (NERL) and Central depository services (India) limited (CDSL). It is in nascent stage of implementation across India.   
 
KEYWORDS: Negotiable Ware House Receipts (NWR), WDRA, NERL, CDSL.

Introduction WHR loans are being mainly availed by three kind of borrowers i.e. manufacturers, traders and farmers. At loan maturity borrowers itself used to pay entire due amount or buyers may pay off the dues for release of pledged commodities. Commodities are being stocked usually three kind of ware houses i.e. Govt owned (Central or state), private ware houses and WDRA accredited godowns. Collateral mangers are the mediators for hand holding of all kind formalities at warehouses reading stocking, fumigation, record maintains, lock and key possession other than govt. owned warehouses. If borrower fails to repay bank loans in that case banks can take possession of commodities through collateral mangers and sell the commodities to set off the dues.  

           Some of emerging agricultural economies i.e. Ukrain, Indonesia and Brazil have implemented WHR financing system in advance stage since year 2000. WHR financing is not new for India; however it took momentum post endorsement WDRA act 2007. Earlier mainly farm credit was focus area, post harvest credit needs were not addressed by policy makers and lending institutions. It is having enormous possibilities for lending institutions to meet out their RBI prescribed priority sector advances.