Export Import Bank of India (EXIM Bank)
Set up on January 1, 1982, the Export Import Bank of India is the apex banking institution in the field of financing foreign trade of India, The Exim Bank provides financial assistance to exporters an importers and functions as the principal financial institution for coordinating the working of other institutions engaged in financing of exports and imports of goods and services. It provides refinance facilities also to the commercial institutions against their export-import financing activities. Broadly, the functions i of Exim Bank include:
Bank provides financial assistance to exporters and importers and functions as the principal financial institution for coordinating the working of other institutions engaged in financing of exports and imports goods and services. It provides refinance facilities also to the commercial institutions against their ex- R port-import financing activities. Broadly, the functions A of Exim Bank include:
(i) financing of exports from and imports into not only India, but also third countries, of goods and ser vices:
(ii) financing of joint ventures in foreign countries; II .
(iii) financing of export and import of machinery
and equipment on lease basis;
(iv) providing loans to an Indian party so as to enable it to contribute in the share capital of a joint venture in a foreign country.
The Bank also undertakes limited merchant bank ing functions such as underwriting of stocks, shares bonds, or debentures of companies engaged in exports or imports and providing technical, administrative and financial assistance to parties in connection with exports or imports.
The paid-up capital of the Bank is Rs. 500 crores wholly subscribed by the Central Government. The Government also grants loans to the Bank. The Bank can raise resources from (i) the open market through the issue of bonds and debentures, (ii) from Reserve Bank of India, from its National Industrial Credit (Long Term Operations) Fund and (iii) can borrow foreign currency in or outside India
Entire business of the Industrial Development! S Bank of India relating to export financing has been tl taken over by the Exim Bank.
Exim Bank operates three broad programmes of financing, viz., loans, re-discounting and guarantees present programmes are operated by the Bank as follows:
(a) Loans to Indian companies are provided under ir its (i) Direct Financial assistance to exporters. (ii) Technology and Consultancy Services. (iii) Overseas in¬vestment financing for equity participation by an Indian company in jOint venture abroad. (iv) Pre-Shipment Credit in case of export contract for capital goods.
(b) Loans to foreign Governments, Companies and Financial Institutions are provided under its: (i) Overseas Buyer's Credit Scheme. (ii) Lines of Credit to foreign governments. (Hi) Relending facility to banks overseas
(e) Loans of Commercial Banks in India are available under : (i) Export Bills Re-discounting Schem
(Short-term bills). (ii) Refinance of Export Credit.
Guarantee programme is available in case of construction and turnkey contracts.
