What is EXIM Bank?
EXIM Bank, or the Export-Import Bank of India, is a financial institution that was established in 1982 by the Government of India. It is a wholly-owned government company and is headquartered in Mumbai. EXIM Bank’s primary objective is to promote India’s exports and imports by providing financial assistance to exporters and importers.
Role of EXIM Bank
EXIM Bank plays a vital role in promoting India’s foreign trade. It does this by providing a variety of financial products and services to exporters and importers, including:
- Export credit: EXIM Bank provides loans to exporters to finance their export shipments. This can help exporters to compete with exporters from other countries and to expand their export markets.
- Import finance: EXIM Bank provides loans to importers to finance their import shipments. This can help importers to bring in essential goods and services that are not available in India.
- Risk insurance: EXIM Bank provides insurance against political and commercial risks to exporters and importers. This can help to protect exporters and importers from financial losses due to unforeseen events.
- Project finance: EXIM Bank provides financing for large infrastructure projects, both in India and overseas. This can help to boost economic growth and development.
Functions of EXIM Bank
In addition to providing financial assistance, EXIM Bank also performs a number of other functions, including:
- Advising the government on foreign trade policy
- Coordinating the activities of other financial institutions that are involved in foreign trade
- Promoting investment in India by foreign companies
- Providing training and technical assistance to exporters and importers
Facilities offered by EXIM Bank
EXIM Bank offers a wide range of facilities to exporters and importers, including:
- Export credit
- Import finance
- Risk insurance
- Project finance
- Working capital finance
- Buyer’s credit
- Supplier’s credit
- Triangular trade finance
- Vendor development finance
- Marketing finance
- Overseas investment finance
MCQs on EXIM Bank
- Question 1: What is the full form of EXIM Bank?
Answer: EXIM Bank stands for Export-Import Bank of India. - Question 2: When was EXIM Bank established?
Answer: EXIM Bank was established in 1982. - Question 3: What is the role of EXIM Bank?
Answer: EXIM Bank’s primary role is to promote India’s exports and imports. - Question 4: What are the functions of EXIM Bank?
Answer: EXIM Bank performs a number of functions, including providing financial assistance, advising the government on foreign trade policy, coordinating the activities of other financial institutions that are involved in foreign trade, promoting investment in India by foreign companies, and providing training and technical assistance to exporters and importers. - Question 5: What are the facilities offered by EXIM Bank?
Answer: EXIM Bank offers a wide range of facilities to exporters and importers, including export credit, import finance, risk insurance, project finance, working capital finance, buyer’s credit, supplier’s credit, triangular trade finance, vendor development finance, marketing finance, and overseas investment finance.