EXIM Bank

Union Finance Minister recently announced the setting up of a subsidiary of EXIM Bank and data embassies at GIFT City in Gujarat.

About the 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.

About the GIFT City –

• GIFT is planned as a financial Central Business District (CBD) under-construction on the banks of the Sabarmati River between Ahmedabad and Gandhinagar in Gujarat.
• It is India’s first operational greenfield smart city and international financial services centre.
• The total area for the development of GIFT is 886 acres out of which the Special Economic Zone (SEZ) constitutes 261 acres.
• It houses India’s first International Financial Services Center (IFSC).
• Objectives —
  • • To develop a new format for globally benchmarked Integrated City
    • To propose a road map for fast-track development and implementation
    • To make the city scalable in each and every aspect for a distant future
    • To derive the city format from fast changing lifestyles and new technologies
    • To achieve an image of Global city, that keeps pace with modern technologies

Significance –

• GIFT shall be a hub for the global financial services sector, with state-of-the-art connectivity, infrastructure and transportation access.
• Envisioned as an Eco-City, GIFT will showcase business-oriented, environmentally-sensitive growth.
• It offers a test-bed to drive reforms and innovation in various fields including in delivery systems, local government, physical planning, infrastructure development, environmental protection and so on.
• This means, the fundamental principles of life and liveability serve as the city’s foundation.