The Export-Import (EXIM) Bank of India is the principal financial institution in India for coordinating the working of institutions engaged in financing export and import trade. It is a statutory corporation wholly owned by the Government of India. It was established on January 1, 1982 for the purpose of financing, facilitating and promoting foreign trade of India.
The authorised capital of the EXIM Bank is Rs. 200 crore and paid up capital is Rs. 100 crore, wholly subscribed by the Central Government. The bank can raise additional resources through:
(i) Loans/grants from Central Government and Reserve Bank of India ;
(ii) Lines of credit from institutions abroad ;
(iii) Funds raised from Euro Currency markets ;
(iv) Bonds issued in India.
What are the functions of Export-Import Bank of India:
The main functions of the EXIM Bank are as follows:
(i) Financing of exports and imports of goods and services, not only of India but also of the third world countries;
(ii) Financing of exports and imports of machinery and equipment on lease basis;
(iii) Financing of joint ventures in foreign countries;
(iv) Providing loans to Indian parties to enable them to contribute to the share capital of joint ventures in foreign countries;
(v) to undertake limited merchant banking functions such as underwriting of stocks, shares, bonds or debentures of Indian companies engaged in export or import; and
(vi) To provide technical, administrative and financial assistance to parties in connection with export and import.