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EXIM Bank, NABARD, RRBs. Group 4. Export Import Bank Of India (EXIM Bank of India). Premier export finance institution of India Set up in 1982 under the Export-Import Bank of India Act 1981 Enhance exports Integrate foreign trade and investment with the economic growth
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EXIM Bank, NABARD, RRBs Group 4
Premier export finance institution of India • Set up in 1982 under the Export-Import Bank of India Act 1981 • Enhance exports • Integrate foreign trade and investment with the economic growth • Catalyst in the promotion of cross border trade and investment
Objective “… for providing financial assistance to exporters and importers, and for 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…”
Genesis • Set up by an act of parliament in 1981 • Wholly owned by the government of India • Commenced operations in march 1982 • Apex financial institution
Finance and Services 1. Export Credit: Pre-shipment credit, Supplier’s credit, For project exporters, etc. 2. Finance for export oriented units Term finance, Working capital finance (for exporting and non-exporting companies), export finance
3. Overseas investment finance: Finance for Indian Company's equity participation in the overseas Joint Venture/ Wholly Owned Subsidiary, Direct finance, Debt component, etc. 4. Small and Medium Enterprises (SME) finance: Information dissemination, capacity building -quality, safety, export marketing, etc., financial advisory services such as loan syndication, etc.
5. Agri Finance: Term loans, pre-shipment/post-shipment credit, overseas buyers' credit, bulk import finance, guarantees etc. 6. Film Finance: Loans more than Rs. 33.15 crores for film production. 7. Rural initiatives Facilitating linkage between rural grassroot enterprises and corporates and with overseas buyers and agencies.
Organizational Structure • Corporate banking group • Project Finance / Trade Finance Group • Lines of Credit Group • Agri Business Group • Small and Medium Enterprises Group • Export Services Group • Fee based Export Marketing Services
National Bank for Agriculture and Rural Development (NABARD)
Apex Development Bank • Facilitating credit flow • Promotion and Development of agriculture, small-scale industries, cottage and village industries, handicrafts ,rural crafts
Mission “Promoting sustainable and equitable agriculture and rural development through effective credit support, related services, institution building and other innovative initiatives”
Objectives • Will be an apex organisation; policy, planning operational aspects for promotion of Agriculture, Small Scale Industries, etc. • Serve as a refinancing institution for institutional credit • Provide direct lending • Organic links with the Reserve Bank
Major activities • Preparation of Potential Linked Credit Plans • Refinancing banks • Providing loans to Government organizations • Supporting credit innovations of NGOs • Extending formal banking services to the unreached rural poor • Promoting participatory watershed development • On-site inspection of cooperative banks
Functions • All matters concerning policy, planning, operations in the field of credit for agriculture and other economic activities in rural areas • improving absorptive capacity of the credit delivery • co-ordinates the rural financing activities • Prepares rural credit plans for all districts in the country • monitoring and evaluation of projects • promotes research
The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) • Meeting the needs of rural areas • Regional Rural Banks Act, 1976 • Currently, there are 82 RRBs in India
Objectives • Bridging the credit gap in rural areas • Check the outflow of rural deposits to urban areas • Reduce regional imbalances and increase rural employment generation
Functions and Roles Authorized to carry on to transact the business of banking as defined in the Banking Regulation Act : • granting loans and advances to small and marginal farmers and agricultural labourers • granting loans and advances to artisans‚ small entrepreneurs, etc.
Act as a catalyst element and thereby accelerate the economic growth in the particular region. • cultivate the banking habits among the rural people • increase employment opportunities by encouraging trade and commerce in rural areas • encourage entrepreneurship in rural areas • cater to the needs of the backward areas • strive to remove economic disparity between regions.
RRBs in India • SBI • Haryana State Cooperative Apex Bank Limited • National Bank for Agriculture and Rural Development • Sindhanur Urban Souharda Co-operative Bank • United Bank of India • Syndicate Bank