Functions of EXIM Bank of India
Export-Import Bank of India is the premier export finance institution of the country. It is an apex institution for coordinating the working of institutions in India engaged in financing exports and import of goods and services. Exim Bank was established on Jan 01, 1982 (and started functioning wef March 01, 1982) under Export Import Bank of India Act 1981. It has its headquarters in Mumbai.
One of the major functions of EXIM bank is to facilitates financing, facilitating and promoting foreign trade of India. It is wholly owned by the Government of India. It can raise funds from loans/grants from government, RBI, bonds issued in india and credit from institutions abroad.
EXIM Bank extends Lines of Credit (LOCs) to overseas financial institutions, regional development banks, sovereign governments and other entities overseas, to enable buyers in those countries to import developmental and infrastructure projects, equipment, goods and services from India, on deferred credit terms.
Exim Bank is managed by a Board of Directors of 17 members which has a chairman and managing director, 5 representatives from the Government, 1 director nominated by Reserve Bank of India, 1 director by Export Credit Guarantee Corporation of India, 3 directors nominated by scheduled banks, 1 director by IDBI and 4 professionals/experts.
Functions of EXIM Bank
- Financing of exports and imports of goods and services.
- Financing of exports and imports of machinery and equipment on lease basis.
- Financing of joint ventures in foreign countries.
- Providing loans to Indian parties to enable them to contribute to the share capital of joint ventures in foreign countries
- To undertake limited merchant banking functions such as underwriting of stocks, shares, bonds or debentures of Indian companies engaged in export or import
- To provide technical, administrative and financial assistance for promotion, management and expansion of exports.
- Guaranteeing the obligations.
Authorized Capital of EXIM Bank
The authorized capital of EXIM Bank is Rs 10000 crore. The cabinet has given the approval to increase the authorized capital to Rs 20000 crore
EXIM Product and Policies
EXIM banks provide finance to Indian companies, foreign companies and commercial banks in the form of Pre-shipment credit, term loans for export production, finance for export marketing, overseas investment finance, line of credit, export bill rediscounting, and overseas buyer’s credit.
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