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The EXIM Bank was set up in January 1982 with the main object of giving a boost to the countrys

export promotion drive and to pay for the increased imports. It took over the operations of the International Finance Wing of the IDBI. It acts as the apex agency in coordinating the activities of the other institutions engages in the financing of exports and imports of goods and services. The Bank is responsible for providing refinancing facilities to the commercial banks and other commitments in the areas of exports and imports. As observed in the Export Import Bank of India Act, 1981: the Bank may grant, in or outside India loans and advances by itself or in participation with any bank or financial institution whether in India or outside India fo r the purpose of export or import and shall also function as the principle institution engaged in financing of the export and import in such manner as it may deem appropriate. Objectives Within the framework of the basic aim of the Bank the objectives of the Bank may be summarized as under:

Provision of financial technical and administrative assistance in the export import sectors; planning promotion development and financing of export oriented concerns; undertaking and financing research surveys and techno economic studies in connection with the promotion and development of foreign trade; collection compilation and dissemination of market and credit information in respect of international trade.

Functions 1. 2. 3. 4. 5. Provision of financial for the export and import of goods and services not only of India but also of third world countries. provision of financial help for the exports and imports of machinery and equipment on lease basis; Provision of financial help for facilitating joint ventures in foreign countries. undertaking of limited merchant banking activities such as underwriting of stocks shares debentures etc of companies engaged in the export import sectors; Provision of financial technical and administrative assistance to parties engaged in th e export- import sectors.

Broadly the Bank provides two types of assistance viz., (i) funded assistance and (ii) non -funded assistance. Funded assistance is provided to Indian exporters to enable them to operate in international markets. In particular it includes the following: 1. Loans to Indian Companies (a) Direct financial assistance to exporter in the form of medium term credit to enable them to extend deferred credit to overseas buyers; (b) Overseas investment finance to enable Indian promoters of overseas joint ventures to finance equity participation in the form of export of plant and machinery or cash remittances; (c) Technology and consultancy services; (d) Pre-shipment credit to finance export contracts for capital goods. II. Loans to Foreign Governments Companies and Financial Institutions 1. 2. 3. Overseas buyers credit directly to foreign importers for importers for import of Indian capital goods and related services; Lines of credit to foreign Governments and financial institutions for import of Indian capital goods and related services; Re-lending facilities to banks overseas to enable them to provide term finance for import of Indian capital goods.

III. Loans to Commercial Banks in India 1. 2. Export bills rediscounting facility; Refinance of export credit.

Non funded assistance is provided in the form of guarantee in association with Indian commercial banks on behalf of Indian exporters/contractors in favour of overseas importers/employers and banks. These guarantees are in the form of bid bonds advance payments and performance guarantees retention money guarantees and guarantees for raising finance abroad.

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