Union Finance Minister recently announced the setting up of a subsidiary of EXIM Bank and data embassies at GIFT City in Gujarat
About 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.
- 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.
- 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.
Gujarat International Finance Tec-City (GIFT City):
- Location: It is located in the state of Gujarat, between Ahmedabad and Gandhinagar, on the bank of river Sabarmati.
- The GIFT city is built on 886 acres and has a multi-service Special Economic Zone (SEZ).
- It is home to India’s first International Financial Services Centre (IFSC) and also has Domestic Tariff Area (DTA)
- It aims to be a ‘smart city’ for India’s growing finance and technology sectors.
- It is being developed as a well-planned and technology-enabled smart city having world-class commercial, residential and social facilities of global standards.
Q1) What are International Financial Services Centres ("IFSCs")?
IFSCs have been envisioned by the Indian government as a special economic zone and a financial centre located within India for the provisioning of various financial services to resident and non-resident participants in foreign currency (i.e., not Indian Rupee).