NATIONAL FINANCIAL INSTITUTION : EXPORT - IMPORT BANK OF INDIA

INTRODUCTION :  Under the Export-Import Bank of India Act 1981 , EXIM Bank of India is the premier export finance institution of the country , set up in 1982 . GOI launched this institution with a directive , not just to enhance exports from India , but to incorporate the country's foreign trade and investment with the overall economic growth . Since it's commencement , EXIM Bank of India has been both a mechanism and a key player in the promotion of cross border trade and investment . Initiating operations as a stockist of export credit , like other Export Credit Agencies in the world , EXIM Bank has , over the period , evolved into an institution that plays a major role in partnering Indian industries , particularly the Small and Medium Enterprises , in their globalisation efforts , through a wide range of products and services offered at all stages of the business cycle , starting from import of technology and export product development to export production , export marketing , pre- shipment and post- shipment and overseas investment .

    MISSION : The Export - Import Bank of India Act , 1981.

         "For providing financial assistance to exporters and importers , and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade shall act on business principles with due regards to public interest . "

  SALIENT POLICIES AND FEATURES :

    1. EXIM Bank of India has been the prime mover in encouraging project exports from India.

     2. The Bank provides Indian project exporters with a comprehensive range of services to enhance the prospect of their securing export contract, particularly those funded by Multilateral Funding Agencies like the WORLD BANK , ASIAN DEVELOPMENT BANK , AFRICAN DEVELOPMENT BANK AND EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT .

   3. The Bank extends lines of credit to overseas financial institution , foreign government and their agencies , enabling them to finance imports of goods and services from India on deferred credit terms.

  4. EXIM Bank's lines of credit obviate credit risks for Indian exporters and are of particular relevance to SME exporters.

  5. The Bank' s Overseas Investment Finance programme offers a variety of facilities for Indian investment and acquisition overseas. The facility include loan to Indian companies for equity participation in overseas ventures , direct equity participation by EXIM Bank in the overseas venture and non-facility such as letters of credit and guarantee to facilitate local borrowing by the overseas venture.

   OBJECTIVES OF EXIM BANK : 

       The Export - Import Bank of India is a public sector financial institution , established on JANUARY 1 , 1982 . It was established by an Act of Parliament for the purpose of financing , facilitating and promoting foreign trade of India. It is the principal financial institution for coordinating the working of institution engagement in financial export and import. The EXIM Bank Act also empowerment the bank to finance export of consultancy and related services , assistant Indian joint ventures in third country conduct export market studies , finance export oriented industries and provide international merchant banking services .

     The Bank's authorised capital is 200 crores which can be increased to 500 crores . The Bank can also raise loan resources from : 

       (i) The government of India .

       (ii) The Reserve Bank of India .

       (iii) Indian capital market.

      (iv) The International market.

 FUNCTIONS OF EXIM BANK :

     The various lending programmes of the Exim bank are given below: 

1. BULK IMPORT FINANCE : Enable banks to offer finance to importers for bulk import of consumables inputs.

2. EXPORT BILLS REDISCOUNTING : Enables banks to rediscount export bills , with usance period not exceeding 180 days.

3. SMALL SCALE INDUSTRY ENABLE BANKS TO REDISCOUNT : Enables banks to rediscount export bills of their SSI customers.

4. COMPUTER SOFTWARE EXPORT : Enables acquisition of imported and indigenous computer systems , project related assets.

5. OVERSEAS INVESTMENT FINANCE : Enables Indian promoter to finance equity contribution in joint ventures set up abroad .

THANKING YOU..