Export Import Banking … providing financial assistance to exporters and importers, and … functioning as the 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...

1. EXIM TRADE

2. Pre-shipment credit
It is required for
production, processing
and packaging.
Export Financing and Institutional
Support
Post-shipment credit
It is required to finance
overseas buyers.
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The export credit, in India, may be studied with reference to its two
stages,

3. Short-term export
Pre-shipment and post-
shipment finance, is provided
by the commercial banks,
which are authorised dealers in
foreign exchange. These
credits have been covered by a
special refinance scheme of the
RBI and are provided at
concessional rates of interest.
Export Financing and Institutional
Support
Long-term Credit
The medium and long-term
export credit is provided
mainly by the Exim bank and
the commercial banks
refinanced by the IDBI.
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On the basis of the period of loans, export credit can be classified as
short-term, medium, and long-term credit.

4. Export-Import Bank
The Government of India has set up the Exim
Bank with wide functions to finance, promote,
and develop foreign trade.
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5. ... providing financial assistance
to exporters and importers, and ...
functioning as the 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...
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6. The Bank provides financial
assistance to promote Indian
exports through
⊸ direct financial assistance,
⊸ overseas investment finance,
⊸ term finance for export production and
⊸ export development,
⊸ pre-shipment credit,
⊸ buyers’ credit,
⊸ lines of credit,
⊸ relending facility,
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7. The Bank provides financial
assistance to promote Indian
exports through
⊸ export bills rediscounting,
⊸ refinance to commercial banks,
⊸ finance for computer software exports,
⊸ finance for export marketing, and
⊸ bulk import finance to commercial banks.
The Bank also extends non-funded facility to exporters
in the form of guarantees.
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8. Bank’s
Focus
is on export of manufactured goods, project exports,
export of technology services, and export of software.
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9. A picture is worth a
thousand words
Bank has signed an MOU with the
European Bank for Restructuring
and Development (EBRD), which
will facilitate assistance in the form
of structural information about the
projects and opportunities in
eastern Europe.
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1
ON
LENDING
OVERSEAS IMPORTER(S)
INDIAN EXPORTER(S)
COMMERCIAL BANK OVERSEAS BORROWER

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1. Exim Bank signs agreement with borrower and announces
when effective.
2. Exporter checks procedures and service fee with EXIM
Bank and negotiates contract with importer.
3. Importer consults borrower and signs contract with
exporter.
4. Borrower approves contract.
5. Exim Bank approves contract and advises borrower and
also exporter and commercial bank.
6. Exporter ships goods.
7. Commercial bank negotiates shipping documents and pays
exporter.
8. Exim bank reimburses commercial bank on receipt of claim
by debit to borrower.
9. Borrower repays Exim Bank on due date.

12. Thanks!
Any questions?
By
Satyajeet Malla
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