What is EXIM Bank?

EXIM Bank is popularly regarded as an ‘Export-Import Bank‘. It was established in the year 1982 under the Indian act of Export-Import Bank of India Act,1982 and has been set up to provide long-term finance to exporters as well as importers to meet their financial needs related to international trade of the country India. It is the biggest and the salient institution which is based on finance of export for the investment and trade of foreign countries with the country’s economic growth. The 1st Chairman of the bank was R.C. Shah and who was also the first Managing director. Exim Bank lengthens the LOCs (Lines of Credit) to banks of regional development, financial overseas institutions, sovereign government and many more institutions for import and export of goods, services, trade, infrastructural equipment etc. from and to the country India. 

The Indian Government owned the EXIM Bank and was regulated by the Reserve Bank of India. This bank is owned by the government of India. David Rasquinha is the recent Managing Director of EXIM Bank with Mumbai (Maharashtra) as it’s headquarter. The Indian Government decided to launch Rs. 1,500 crore capital in next year (financial year) in the EXIM Bank. Rs. 1,300 crore capital has been infused by the Indian government for this bank which supports various new initiatives such as textile industry of India, schemes of concessional finance alteration etc.

Roles and Objective of EXIM Bank

The role and objectives of EXIM Bank are as follows;

• 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

Functions of EXIM Bank

The role of EXIM Bank are as follows;

• • Financial export and import of services and goods from the country as exim trade.
  • It helps in financing the export as well as import of machines.
  • It also helps to refinance the bank services as well as other institutions for foreign financing trade or exim trade.
  • It helps in financing the export or import of services and goods from other countries also.
  • It also provides financial assets for the business in foreign and also helps the business to join the joint venture in foreign.
  • It also helps in providing the finance for technical assets to exporters and importers.
  • EXIM trade helps in functioning the export and import of Merchant Navy Banks
  • EXIM Bank also plays a major role in writing shares, bonds, stocks as well as debentures involved in foreign companies’ trade

• • It also offers the LOCs and short-term loans to foreign governments and banks
  • To provide finance in cooperative banks
  • This bank provides the services of business advisory
  • EXIM Bank also provides funds for foreign country’s projects
  • To partner the industries of India in their competitive and superior globalisation attempts

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.