FINANCIAL INSTITUTIONS

AND MARKETS

EXIM BANK?
By…
Vybhavi.M
Rakshitha R
 INTRODUCTION:
 Exim Bank was established by the Government of India under the Export-Import
Bank Act, 1981 as a manager of export credit, mirroring global export credit
agencies.

 Exim Bank acts as a growth engine for industries and SMEs through a wide range
of products and services.

 This includes import and export of technology, product development, export

production, export marketing, pre-shipment export and post-shipment and
foreign investment.

 Exim Bank extends Lines of Credit (LoCs) to foreign financial institutions,

regional development banks, sovereign governments and other entities abroad,
for the purchase of developmental and infrastructure projects, equipment,
goods and services from India by buyers in those countries on deferred credit
terms.
HISTORY:

The Export-Import Bank of India (Exim Bank) was

founded by the Government of India under the
Export-Import Bank of India Act, 1981, which was
introduced in the Indian Parliament by the then
Finance Minister, Shri Pranab Mukherjee. The act was
passed by both houses of parliament and received
the assent of the President of India on 7 April 1982.
The first chairman and managing director of Exim
Bank was Shri R.S. Rathore.
Functions of EXIM bank are :
 Finances import and export of goods and services from India

 It also finances the import and export of goods and services from countries other than
India.

 It finances the import or export of machines and machinery on lease or hires purchase
basis as well.

 Provides refinancing services to banks and other financial institutes for their financing
of foreign trade

 EXIM bank will also provide financial assistance to businesses joining a joint venture in a
foreign country.
 Contin……
 The bank also provides technical and other assistance to importers and
exporters. Depending n the country of origin there are a lot of processes
and procedures involved in the import-export of goods. The EXIM bank will
provide guidance and assistance in administrative matters as well.

 Undertakes functions of a merchant bank for the importer or exporter in

transactions of foreign trade.

 Will also underwrite shares/debentures/stocks/bonds of companies engaged

in foreign trade.

 Will offer short-term loans or lines of credit to foreign banks and

governments.

 EXIM bank can also provide business advisory services and expert knowledge
to Indian exporters in respect of multi-funded projects in foreign countries
Objective of EXIM Bank
 To ensure the export or import projections

 To encourage and facilitate the export of international and technical and

merchant banking services as well as their joint ventures

 To lengthen the LOCs and credit of buyers

 To make competition for exporters on the financial terms

 To provide timely and relevant information to exporters of India about their

opportunities in various export fields and areas

 To provide advice on currency related issues so that producers or

manufacturers or India may perform the cost effective exports and imports

 To look into Indian finance problems and give resolution policies for it

 To enhance and promote the trade of foreigners in our country India

Role of EXIM Bank:

 Import and export Financing

 Overseas investment

 Guarantees and Insurance

 Lines of Credit

 Export Promotion

 Research and Publications

 Supporting SME’s and MSME’s

 Trade Finance Services

 Capacity building and training

 CAPITAL OF IMPORT AND EXPORT BANK

The authorised capital of the EXIM bank is Rs 200 crore and paid up
capital is Rs 100 crore ,wholly subscribed by the central government.

The Bank can raise the additional resources through;

 Loan or Grants from central government and RBI.

 Lines of credit from institutions abroad.
 Funds rose from euro currency markets.
 Bonds issued in India.
CONCLUSION

EXIM Bank is the bank which ensures the financial terms and assets related to
Export and Import of international or foreign trade which was established in
1982. It provides credit to the exporters and importers and allows safe and
secure trade. It also formulated policies and guidelines for Indian import and
export. It allows the people to do safe business in foreign countries.
THANK YOU