The Union Cabinet has approved recapitalisation of EXIM Bank to the tune of 6,000 crore rupees and an increase in the authorized capital of Exim Bank from 10,000 crore to 20,000 crore rupees.
About:
Nomenclature: Export-Import Bank of India is also known as EXIM Bank of India or simply EXIM Bank.
Background: Exim Bank of India (Exim Bank) was established in 1982 under an Act of Parliament.
Mandate:
It is the apex financial institution for financing, facilitating and promoting India's international trade.
It provides financial assistance to export-oriented Indian companies. It also coordinates the working of institutions engaged in financing exports and imports.
Ownership: It is fully owned by the Government of India.
Regulation: It is regulated by RBI.
HQ: Mumbai.
Recent decision:
The Union Cabinet has approved capital infusion in Exim Bank to the tune of Rs.6,000 crore. The equity will be infused in two tranches of Rs. 4,500 crore in FY 2018-19 and Rs.1,500 crore in FY 2019-20 respectively.
The Cabinet also approved an increase in the authorized capital of Exim Bank from Rs. 10,000 crore to Rs. 20,000 crore.
The recapitalisation bonds will be on the lines issued to Public Sector Banks.
Significance: EXIM Bank is the principal export credit agency for India and infusion of capital into it will enable it to augment capital adequacy and support Indian exports with enhanced ability.
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