Short Note on EXIM Bank
EXIM Bank or the Export-Import Bank of India is the premier export finance institution of the country. It was established in 1982, under the Export-Import Bank of India Act 1981, for providing financial assistance to exporters and importers and for coordinating the working of institutions engaged in financing of export import trade in India.
Export-Import Bank of India is a catalyst and a key player in the promotion of cross border trade and investment.
Export-Import Bank of India was set up with a mandate not only to enhance the export from India, but also to integrate the country's Cross Border Foreign Trade and Investment.
The important functions of the EXIM Bank are as follows:
1. Financing of export and import of goods and services both of India and of outside India.
2. Providing finance for joint ventures in foreign countries.
3. Undertaking merchant banking functions of companies engaged in foreign trade.
4. Providing technical and administrative assistance to the parties engaged in export and import business.
5. Offering buyers’ credit and lines of credit to the foreign governments and banks.
6. Providing advance information and business advisory services to Indian exports in respect of multilaterally funded projects overseas.
During the year 1994-95, the EXIM Bank introduced the ‘Clusters of Excellence’ programme for up-gradation of quality standards and obtaining ISO 9000 certification in various parts of the country.
The Bank also entered into framework cooperation agreement with European Bank for Reconstruction and Development (EBRD) for acquiring advance information on EBRD funded projects in order to enter into co-financing proposals with EBRD in Eastern Europe and CIS.
With a view to promote exports, EXIM Bank has introduced the following three schemes:
1. Production Equipment Finance Programme
2. Export Marketing Finance
3. Export Vendor Development Finance
Over the period, expansion /diversification programme has claimed the maximum share (54.3%) of EXIM Bank’s sanctions, followed by new projects, (33.2%) and modernisation /acquisition of equipment (12.5%).