EXIM Bank or Export-Import Bank of India is India’s leading export financing institute that engages in integrating foreign trade and investment with the country’s economic growth. Founded in 1982 by the Government of India, EXIM Bank is a wholly-owned subsidiary of the Indian Government. The current Managing Director is David Rasquinha. It is headquartered in Mumbai, Maharashtra.
EXIM Bank Foundation
The organization was established in 1982 under the Export-Import Bank of India Act 1981 as a purveyor of export credit. R.C. Shah was the bank’s first Chairman and Managing Director.
Latest Context related to EXIM Bank –
The government of India has decided to infuse Rs 1,500 crore capital into the state-owned Export-Import Bank of India in the next financial year. The amount is Rs 200 crore higher than the provision made by the government for the current fiscal. The government has earmarked Rs 1,300 crore capital infusion for the bank.
The capital infusion will give an impetus to new initiatives such as supporting the Indian textile industry, the country’s active foreign policies, changes in the concessional finance scheme, etc.
Information related to the Export-Import bank given in the article would help candidates prepare for UPSC 2021.
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EXIM Bank Functions
The bank’s functions can be grouped under products and services. They are discussed briefly below:
- Buyer’s credit – it is a credit facility program that encourages Indian exporters to explore new regions across the globe. It also facilitates exports for SMEs by offering credit to overseas buyers to import goods from India.
- Corporate banking – it offers a variety of financing programs to augment the export-competitiveness of Indian companies.
- Lines of credit – it offers extended a line of credit to Indian exporters to help them expand to new geographies and uses a line of credit as an effective market-entry tool.
- Overseas investment finance – it offers term loans to Indian companies for equity investments in their overseas joint ventures or wholly-owned subsidiaries.
- Project exports – encourages project exports from India and helps Indian companies secure contracts abroad.
- Marketing advisory services – help Indian exporters in their globalization ventures by assisting in locating overseas distributors/partners, etc. Also, assists in identifying opportunities abroad for setting up plant projects or acquiring companies.
- Research and analysis – conducts research in the field of international economics, trade and investment, country profiles to identify risks, etc.
- Export advisory services – it offers information, advisory, and support services enabling exporters to evaluate international risks, exploit export opportunities and improve competitiveness.
- Term deposit scheme
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EXIM Bank is an important government organization in India working in the field of exports. It plays a crucial role in helping Indian companies do business abroad and bring in foreign exchange. It is a part of the economy section of the UPSC syllabus and comes under General Studies Part III.
FAQ about EXIM Bank
Is Exim bank regulated by RBI?
Who owns EXIM bank?
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