The Union Cabinet today approved the introduction of “The Export Import Bank of India (Amendment) Bill, 2011” to amend the Export – Import Bank Act, 1981 (the Act) in the Parliament.
The Bill seeks to increase the authorised capital of the Exim Bank from Rs.2000 crore to Rs.10,000 crore with the provision that the Central Government may, further, by notification, increase the said capital up to an amount that it may deem necessary from time to time and also to make a provision for appointment of two-whole time Directors, other than the Chairman and Managing Director (CMD), in the Bank by the Central Government.
Increase in the authorised capital would enable the bank to take higher export credit exposures, enable it to borrow funds to disburse under export line of credits. Further by appointing two whole time directors, the management structure of the bank would be strengthened which in turn would enable the bank to achieve excellence in its area of operations, compete with international banks and export credit agencies in its endeavour to promote India’s international trade and investment.
The Export Import Bank of India, herein after referred as Exim Bank, was set up as a Corporation in 1982 under the Export Import Bank of India Act, 1981 for providing financial assistance to exporters and importers and for functioning as principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade and connected matters.