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EXIM Bank Function and its Activities - Export Import Bank of India - भारतीय निर्यात आयात बैंक

Functions of Exim Bank

The important functions of Exim Bank are as follows:

(i) It provides direct financial assistance to exporters of plant, machinery and related service in the form of medium-term credit.

(ii) It provides rediscount of export bills for a period not exceeding 90 days against short-term usance export bills discounted by commercial banks.

(iii) Underwriting the issue of shares, stocks, bonds, debentures of any company engaged in exports.

(iv) Developing and financing export-oriented industries.

(v) Collecting and compiling the market and credit information about foreign trade.

(vi) The bank gives overseas buyers line of credit to foreign importers for import of Indian capital goods and related services.

EXIM Bank also provide Line of Credit on lend to overseas buyers for import of Indian equipment, goods and services.

A Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects, equipment, goods and services from India.

LOC is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters to enter new export markets or expand business in existing export markets without any payment risk from the overseas importers.

Activities of Exim Bank

The bank can raise additional resources through borrowing from Government of India, from RBI and from the market through the issue of bonds and debentures.
Exam bank also provides refinance facilities to the commercial bank and financial institutions against their export-import financing activities.

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