Notification/Circular No.: T-30/5/2020-Technical-Part(2), dated 20th August, 2026
Applicable Act/Rule: Warehousing (Development and Regulation) Act, 2007; Warehousing (Development and Regulation) Warehouses Registration Rules, 2017
Applicable Section/Rule: Sub-rule (1) of Rule 19
Effective Period: 2 September, 2026
Warehousing Development and Regulatory Authority (WDRA) has notified a revised procedure for security deposits required for registration of warehouses under the Warehousing (Development and Regulation) Act, 2007 and the rules and regulations made thereunder, superseding its earlier notification dated 14th June, 2024.
No fixed security deposit will be required from an applicant warehouse or warehouse service provider seeking registration of a warehouse with WDRA for the purpose of issuing a certificate of registration. However, a registered warehouseman who wishes to carry on business relating to issuance of Electronic Negotiable Warehouse Receipts (e-NWRs) must, before commencing such business, submit an advance dynamic security deposit (advance DSD) as specified in paragraph 3 of the notification, and must maintain it thereafter. Where the applicant meets all requirements under the Act and rules, the Authority will issue the certificate of registration immediately upon approval of the inspection report, subject to the insurance requirement being fulfilled.
For warehousemen wishing to issue e-NWRs, the advance dynamic security deposit is a minimum of ₹1,00,000 per warehouse, or an amount corresponding to the value of e-NWRs proposed to be issued, whichever applies. Where the applicant or warehouseman is a Farmer Producer Organisation, Primary Agricultural Credit Cooperative Society, or Self-Help Group intending to issue e-NWRs, the advance dynamic security deposit is ₹50,000 per warehouse (total). The dynamic security deposit itself is one percent of the maximum value of negotiable warehouse receipts outstanding across all of the warehouseman's registered warehouses on any day during the preceding month (referred to as "T"), applied on a slab basis: for T up to ₹25 crore, the dynamic security deposit is nil and the advance DSD is ₹1 lakh per warehouse minimum or the value of proposed e-NWRs; for T above ₹25 crore up to ₹250 crore, the dynamic security deposit is ₹25 lakh plus 0.75% of T; for T above ₹250 crore up to ₹2,500 crore, it is ₹1.937 crore plus 0.50% of T; and for T above ₹2,500 crore, it is ₹13.187 crore plus 0.25% of T. A registered warehouse not intending to carry on e-NWR-related business is not required to submit any security deposit to the Authority.
The advance dynamic security deposit must be maintained during the period of issuance of e-NWRs and for six months thereafter, while the dynamic security deposit must be submitted to the Authority updated at the end of each month, with due acknowledgement, and its validity must be maintained for a minimum period of six months. The Authority may adjust the advance dynamic security deposit against the dynamic security deposit requirement at its discretion, and may adjust previously submitted deposits against subsequently required amounts. The security deposit may be furnished as a bank fixed deposit, bank guarantee/e-bank guarantee, deposit insurance policies or contracts, or any other instrument specified by the Authority, in favour of WDRA; certain institutions constituted under an Act of Parliament or a State Legislature (and, in specified cases, Primary Agricultural Credit Cooperative Societies) may instead furnish an indemnity bond as permitted by the Authority. The Authority will refund the security deposit where a renewal application is rejected and the warehouseman has fulfilled obligations under the rules, where a warehouseman surrenders and the Authority accepts the surrender of the registration certificate, or where a registration certificate is cancelled and obligations have been fulfilled. Warehousemen may not increase charges payable by depositors on account of any revision to these deposit requirements. These provisions apply only to applications for registration of warehouses made on or after the commencement of this notification; warehouses already registered, and pending applications where a security deposit has already been submitted, continue to be governed by the security deposit provisions applicable to them immediately before such commencement.
Link: https://egazette.gov.in/WriteReadData/2026/275941.pdf
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