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    Export-Import Bank of India (Exim Bank)

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    Yash Thakkar
    The Export-Import Bank of India (EXIM Bank) was established in 1982 through an act of Parliament to finance and facilitate foreign trade for India. It provides both fund-based assistance like lending and non-fund based assistance such as guarantees, advisory services, and export promotion activities. Some of its key functions include lending to Indian exporters, foreign buyers and banks, as well as guaranteeing bid bonds, advance payments, and performance guarantees for exporters. It also collects market information and provides financing and technical assistance to boost Indian exports.

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    Export-Import Bank of India (Exim Bank)

    Uploaded by

    Yash Thakkar
    28 views7 pages
    The Export-Import Bank of India (EXIM Bank) was established in 1982 through an act of Parliament to finance and facilitate foreign trade for India. It provides both fund-based assistance like lending and non-fund based assistance such as guarantees, advisory services, and export promotion activities. Some of its key functions include lending to Indian exporters, foreign buyers and banks, as well as guaranteeing bid bonds, advance payments, and performance guarantees for exporters. It also collects market information and provides financing and technical assistance to boost Indian exports.

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    expor marketing

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    The Export-Import Bank of India (EXIM Bank) was established in 1982 through an act of Parliament to finance and facilitate foreign trade for India. It provides both fund-based assistance like lending and non-fund based assistance such as guarantees, advisory services, and export promotion activities. Some of its key functions include lending to Indian exporters, foreign buyers and banks, as well as guaranteeing bid bonds, advance payments, and performance guarantees for exporters. It also collects market information and provides financing and technical assistance to boost Indian exports.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views7 pages

    Export-Import Bank of India (Exim Bank)

    Uploaded by

    Yash Thakkar
    The Export-Import Bank of India (EXIM Bank) was established in 1982 through an act of Parliament to finance and facilitate foreign trade for India. It provides both fund-based assistance like lending and non-fund based assistance such as guarantees, advisory services, and export promotion activities. Some of its key functions include lending to Indian exporters, foreign buyers and banks, as well as guaranteeing bid bonds, advance payments, and performance guarantees for exporters. It also collects market information and provides financing and technical assistance to boost Indian exports.

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    EXPORT-IMPORT BANK OF INDIA (EXIM BANK)

    The EXIM bank was is a public sector financial institution established on 1 st January, 1982. It
    started operating with head office in Mumbai from 1 st march, 1982. It was established by an
    ACT of Parliament, for the purpose financing, facilitating and promoting foreign trade. It is also
    principal financial institution for coordinating the working of institutions engaged in financing
    India’s trade.

    Objectives and functions of EXIM BANK


    1) Financing of exports and imports of goods and services not only of India but also of third
    world countries.
    2) Financing of joint ventures in foreign countries.
    3) Financing of Indian manufactured goods consultancy and technological services on
    deferred payment terms.
    4) Financing R&D and techno-economic studies.
    5) Co-financing global and regional development agencies

    Functions of EXIM BANK


    1) FUND BASED ASSISTANCE
    a) LENDING

    2) NON-FUND BASED ASSISTANCE


    a) Guarantees and bonds
    b) Advisory
    c) Promotional
    Fund based assistance
    Lending

    (A) Lending to Indian Exporters


    1) Seller’s credit
    2) Consultayncy and Technology services
    3) Overseas Investment Financing Programme
    4) Pre-shipment Credit
    5) Finance for EOUs and Units in FTZs
    6) Export Marketing Fund
    7) Export Product Development
    8) Finance to Deemed Exports

    (B) LENDING TO OVERSEAS PARTIES


    1) Overseas Buyer’s Credit
    2) Lines of Credit To Foreign Govt
    3) Lines of Credit To Overseas Banks
    4) Relending Facility

    (C) LENDING TO INDIAN COMMERCIAL BANKS


    1) Export Bills Rediscounting
    2) Refinance of Export Credit
    3) Syndication of Export Credit Risks
    GUARANTEES AND BONDS

    The guarantee programme is available in the case of construction and turnkey contracts.
    Construction contracts involve erection, civil works and commissioning. In a turnkey contract,
    say for setting up of a textile mill, supply of equipment accounts for major value of the contract.
    In such contracts, an Indian exporter usually requires:

     Bid bond
     Advance payment guarantee
     Performance guarantee
     Guarantee for retention money
     Guarantee for borrowings abroad
    ADVISORY SERVICES
    Through its international merchant banking division, EXIM bank offers the following advisory
    services:

    1) It works closely with Indian companies in designing packages for joint ventures in third
    countries.
    2) It advises Indian companies, executing contracts abroad, on sources of favourable
    financing overseas.
    3) It provides access to EURO and financing sources Global Credit sources to Indian
    companies involved in export.
    4) It advises on global exchange control practices.
    5) It helps exporters to take advantage of forfeiting transactions.
    6) It helps in upgrading quality and obtaining ISO9000 certification at any cost.
    PROMOTIONAL ACTIVITIES
    1) It collects, complies and disseminates market and credit information in respect of
    international trade.
    2) It helps to plan, finance and promote export-oriented units.
    3) It encourages export and import by providing technical, administrative and financial
    assistance.
    4) It finances research, surveys and other overseas study to promote export trade.
    EXPORT CREDIT GUARANTEE CORPORATION (ECGC)
    In order to remedy the prevailing high-risk situation and provide adequate cover of insurance
    to exporters a special institution known as Export Guarantee Credit Corporation (ECGC) was
    established in India in 1964. ECGC plays a dual role in promoting exports viz.,

    a) It issues suitable insurance policies to the exporters against possible risks of export
    business.
    b) It provides financial guarantees to banks and exporters against deferred credit terms.

    ECGC does not provide any direct finance to exporters. It only helps them in obtaining finance
    from banks and financial institutions by undertaking to share commercial and political risks with
    such institutions.

    OBJECTIVES OF ECGC
    1) ECGC is designed to protect exporters from the consequences of payment risks both
    political and commercial.
    2) It helps exporters to expand their overseas business without fear loss.
    3) It enables exporters to get timely liberal bank finance.
    4) It provides to banks financial guarantees to safeguard their interest.
    5) It enables exporters and importers to take calculated risks in business.

    Functions of ECGC
    1) It helps exporters in obtaining financial assistance from commercial banks and other
    financial institutions.
    2) It helps exporters in collecting and disseminating information regarding credit-
    worthiness of overseas buyers.
    3) It helps in developing and diversifying exports.
    4) It insures the exporters against credit risks and guarantees payments.
    5) It charges lower rates of premium to enable exporters to effectively compete in
    international market.
    6) It provides risk coverage against political and commercial risks.
    7) It provides services which are not available from commercial insurance companies.

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