About Export-Import Bank of India (EXIM Bank):
- It is the premier export finance institution of the country.
- It was established by the Government of India, under the Export-Import Bank of India Act, 1981
- EXIM Bank wholly owned by the Government of India.
- Services:
- EXIM Bank provides financial assistance to exporters and importers.
- It extends Lines of Credit (LOCs) to overseas financial institutions, regional development banks, sovereign governments and other entities overseas, to enable buyers in those countries to import developmental and infrastructure projects, equipment, goods and services from India, on deferred credit terms.
- It functions as the principal financial institution for coordinating the work of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade.
- Structure:
- The operations of the Bank are governed by a Board of Directors.
- The Board of Directors consists of a chairman, a managing director, two deputy managing directors; one director each nominated by the Reserve Bank of India; IDBI Bank Ltd. and ECGC Ltd.; and not more than 12 directors nominated by the Central Government.
What is a Line of Credit (LoC)?
- It is a preset borrowing limit that can be tapped into at any time.
- All LOCs consist of a set amount of money that can be borrowedas needed, paid back, and borrowed again.
- The borrower can take money out as needed until the limit is reached.
- As money is repaid, it can be borrowed again in the case of an open line of credit.
