Govt approves amendment to Export-Import Bank Act
The Export-Import Bank of India (Amendment) Bill, 2011 seeks to increase the authorised capital of the bank from Rs 2,000 crore to Rs 10,000 crore.business Updated: Nov 16, 2011 14:48 IST
The government on Wednesday approved amendments to the Export-Import Bank Act to improve its ability to increase credit to exporters and importers and said it would now be tabled in parliament.
The Export-Import Bank of India (Amendment) Bill, 2011 seeks to increase the authorised capital of the bank from Rs 2,000 crore to Rs 10,000 crore, said an official statement after the cabinet committee on economic affairs (CCEA) approved the amendments to the act.
The CCEA is headed by Prime Minister Manmohan Singh.
The bill also provides for the government to further increase the capital "up to an amount that it may deem necessary from time to time."
"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," the statement added.
Founded in 1982, the Export-Import Bank provides financial assistance to exporters and importers and is the principal financial institution for coordinating the working of institutions engaged in financing overseas trade.
The amendments also provide for appointment of two-whole time directors, other than the chairman and managing director in the bank by the central government.
"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," the statement said.
First Published: Nov 16, 2011 14:35 IST