Exim Bank of India

Exim Bank of India of India aims to develop value by integrating overseas commerce and investment into the country's economic growth. The Board of Directors governs the Bank's activities

The Export-Import Bank of India Act, 1981 authorised the government of India to create Exim Bank as a provider of export financing in the style of other countries’ Agencies of Export Credit. With a comprehensive range of goods and services, Exim Bank is a growth stimulator for businesses and SMEs of all sizes. Export product development, production, pre and post-shipment and overseas investment are all included in this category. Exim Bank lends money to foreign financial institutions, sovereign governments, regional banks and other international organisations. With the launch of the Buyer’s Credit-National Export Insurance Account programme, EXIM Bank has improved project exports by increasing finance choices.


India’s Export-Import Bank was established in 1982 by an Act of Parliament to finance, facilitate, and promote the country’s international trade. It is the country’s primary financial institution for coordinating the activities of financial institutions involved in export and import financing. The Indian government wholly owns Exim Bank, as its name implies. The Bank of India has a lending programme to help export-oriented companies fund their research and development (R&D) efforts. The bank has set up an Export Marketing Services (EMS) Program to assist Indian companies in identifying potential business partners, facilitating the placement of final orders, and identifying opportunities for the establishment of plants or projects or the acquisition of companies abroad. 

A CEO’s board of directors oversees Exim Bank’s management. Seventeen other members of the board are a part of it. The bank’s current paid-up capital is owned solely by the government. Its head office is in Mumbai. Exim Bank has Rs. 200 crores in authorised capital, of which Rs. 75 crores have been paid up. The government of India has loaned the banks Rs. 20 crores for a long-term period. It can also borrow money from the Reserve Bank of India (RBI). As a result, it has the ability to raise funds domestically and internationally.

Foundation of Exim Bank of India 

The Export-Import Bank of India Act of 1981 founded the organisation in 1982 as a provider of export financing. R.C. Shah was the bank’s first CEO and Chairman.

Objectives of Exim Bank of India

  • Ensuring an all-inclusive and coordinated strategy to resolve issues faced by Indian exporters.
  • Specific attention to be paid to exported capital items.
  • Projection of Export.
  • To facilitate and stimulate joint ventures, exports of technical services, international and merchant banking, and the development of new markets.
  • To increase the amount of credit and credit lines available to customers;
  • To obtain resources from both domestic and overseas markets for export sector development and financial activities.

Functions of Exim Bank of India

  • Supports Indian export and import finance.
  • Imports and exports from countries other than India are also financed by it.
  • Imports and exports of machinery and equipment can be financed on a lease or hire buy basis.
  • Facilitates international trade financing by banks and other financial institutions through refinancing services.
  • The Exim Bank will also help companies that join forces in an international joint venture with financial support.
  • Exporters and importers might get help from the bank with technical issues and other issues. There are a lot of steps and procedures involved in the import-export of commodities, depending on the place of origin. In addition, the Exim bank will assist in administrative concerns.
  • Importers and exporters benefit from the services of a merchant bank that acts as an intermediary in cross-border transactions.
  • The Exim Bank will also underwrite foreign trading businesses’ stocks, bonds, and shares.
  • Foreign banks and governments will be able to get short-term loans or lines of credit.
  • EXIM bank can also assist Indian exporters with multi-funded projects in foreign nations by providing business advice and technical knowledge.

Importance of Exim Bank

Other than lending money, the Export and Import Bank of India continually seeks to develop the Indian foreign trade industry. Exim Bank launched the Clusters of Excellence programme in India in the early 1990s. Import and export quality standards were to be improved. The European Bank for Reconstruction and Development (EBRD) is also a partner. Programs in Eastern Europe will be co-financed by both parties. Production equipment financing, export marketing financing, and vendor development funding are only some of the programmes offered by the Export-Import Bank (EXIM).


The vision of Exim Bank has changed over the years from focusing on export credits and export capacity creation to a more customer-centric approach by providing an extensive range of products and services to enable enterprises at every stage of their business cycle. By providing a wide range of products and services, it is able to build long-term, mutually beneficial relationships with externally-oriented organisations. The goal is to use its leadership and expertise in Export and Import Finance to help Indian enterprises with global ambitions. The bank’s goal is to make it easier for Indian companies to do business around the world.


Frequently asked questions

Get answers to the most common queries related to the Bank Examination Preparation.

The Exim Bank is also partly owned by state governments. True or False, please?

Ans. It is not true. There is only one member of the EXIM Bank: the Central Government.

What is the EXIM Bank's role?

Ans. The EXIM Bank’s primary goal is to help the country’s importers and exporters gain foreign currency...Read full

Is the RBI in charge of Exim Bank?

Ans. The RBI does have oversight over this. To boost Indian exports, the bank primarily provides loans to foreign pu...Read full

What is the Exim policy?

Ans. The government of India has created an EXIM policy to control the country’s import and export trade. The ...Read full