Indian banking system: Development banks: Export-import bank of India (EXIM Bank)

The Export-import bank of India (EXIM Bank) was set up in January 1982 as a statutory corporation wholly owned by central government. Its paid up capital in 1988-89 was Rs 220.50 crores.

Activities performed by EXIM Bank:

  • It grants direct loans in India and outside for the purpose of imports and exports;
  • Refinances loans to banks and other notified financial institutions for the purpose of international trade ;
  • Rediscounts usance export bills for banks;
  • Provide overseas investment finance for Indian companies toward their equity participation in joint venture abroad and guarantees, along with banks, obligations on behalf of project exporters;
  • It is also a co-coordinating agency in the field of international finance and it undertakes development of merchant banking activities in relation to export oriented industries;

Thus it provides fund based as well as non fund based assistance in the foreign trade sector.

The main objective of Export-Import Bank (EXIM Bank) is to provide financial assistance to promote the export production in India. The financial assistance provided by the EXIM Bank widely includes the following:

  • Direct financial assistance
  • Direct financial assistance
  • Foreign investment finance
  • Term loaning options for export production and export development
  • Pre-shipping credit
  • Buyer’s credit
  • Lines of credit
  • Re-loaning facility
  • Export bills rediscounting
  • Refinance to commercial banks

The Export-Import Bank also provides non-funded facility in the form of guarantees to the Indian exporters.

  • Development of export makers
  • Expansion of export production capacity
  • Production for exports
  • Financing post-shipment activities
  • Export of manufactured goods
  • Export of projects
  • Export of technology and software’s

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