¡Disfruta de SmartLeges Premium!

Suscríbete a SmartLeges Premium y disfruta de estas ventajas:

  • Consulta tantas leyes como necesites, gratuitas o de pago, sin coste adicional
  • Consulta casi cualquier ley en varios países gracias al nuevo buscador avanzado. ¡Toda la legislación a tu alcance!
  • Disfruta de todas las características de SmartLeges sin restricciones
Ver los planes

Una aplicación imprescindible y gratuita para profesionales y estudiantes del sector jurídico

Leer más
 

¡Regístrate gratis!

¿Quieres consultar esta y otras leyes completas?

Regístrate gratis y podrás consultar las leyes en tu móvil o tablet, además de subrayar textos, añadir notas...

¡Regístrate gratis!

Compartir esta ley Otras leyes de India
Email Facebook Twitter Google Linkedin Tumblr

EXPORT-IMPORT BANK OF INDIA ACT

Ministry of Law and Justice

Act nº 28 of 1981


  • Chapter 1
  • Chapter 2
  • Chapter 3
  • Chapter 4
  • Chapter 5
  • Chapter 6
  • Chapter 7
  • Chapter 8
  • Chapter 9
  • Schedules
  • Amending Acts
  • Act nº 28 of 1981

Preamble

THE EXPORT-IMPORT BANK OF INDIA ACT, 1981

[Act, No. 28 of 1981]

[11th September, 1981]

PREAMBLE

An Act to establish a corporation to be known as the Export-Import Bank of India for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for co-ordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Thirty-second Year of the Republic of India as follows:-

Chapter 1

Section 1. Short title, extent and commencement

(1) This Act may be called the Export-Import Bank of India Act, 1981.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

Section 2. Definitions

In this Act, unless the context otherwise requires,--

(a) "Board" means the Board of Directors of Exim Bank referred to in S. 6;

(b) "Development Bank" means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964;

(c) "Exim Bank" means the Export-Import Bank of India established under section 3;

(d) "export" and "import" mean, respectively, export from or import into India or any other country of goods or services, or both;

(e) "goods" includes all materials, commodities and articles in a solid, liquid or gaseous state and all forms of energy;

(f) "notification" means a notification published in the Official Gazette;

(g) "prescribed" means prescribed by regulations made under this Act;

(h) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934;

(i) "scheduled bank" means a bank, for the time being, included in the Second Schedule to the Reserve Bank of India Act, 1934;

(j) "services" includes,--

(i) providing personnel (including skilled or unskilled workmen and persons for rendering technical or other services) for the purposes of any work or project (by whatever name called) or any activity;

(ii) transferring of technology, including transferring, or securing the transfer of rights, know how, expertises or other skill with respect to any patent, invention, model, design, secret formula or process or similar property;

(iii) furnishing any information, blueprints, plans, or advice with respect to any matter; and

(iv) making available any other resources.

Chapter 2

Section 3. Establishment and incorporation of Export-Import Bank of India

(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established for the purposes of this Act a corporation to be known as the Export-Import Bank of India.

(2) The Exim Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue or be sued.

(3) The head office of the Exim Bank shall be at Bombay or at such other place as the Central Government may, by notification, specify.

(4) The Exim Bank may establish offices, branches or agencies at such places in or outside India as it may consider necessary.

Section 4. Authorised capital

1 [(1) The authorized capital of exim bank shall be one thousand crores of rupees;

Provided that the Central Government may be notification, increase the said capital up to two thousand crores of rupees]

Provided that the Central Government may, by notification, increase the said capital up to five thousand crores of rupees.

(2) The issued capital of the Exim Bank shall be wholly subscribed by the Central Government.

1. Substituted by the Export-Import Bank of India (Amdt.) Act, 1998 w.e.f. 02-01-1999. Prior to Substitution it read as under

"The Authorised capital of the Exim Bank shall be two hundred crores of rupees"


Chapter 3

Section 5. Management

(1) The general superintendence, direction and management of the affairs and business of the Exim Bank shall vest in the Board, which may exercise all powers and do all acts and things which may be exercised or done by the Exim Bank.

(2) Save as otherwise provided in the regulations made under this Act--

(a) the chairman, if he is a whole-time director or if he is holding offices both as the chairman and the managing director, or

(b) the managing director, if the chairman is not a whole-time director, or, if the chairman being a whole-time director, is absent, shall also have powers of general superintendence, direction and management of the affairs and business of the Exim Bank and may also exercise all powers and do all acts and things which may be exercised or done by the Exim Bank.

(3) Subject to the provisions of this Act, the Board in discharging its functions shall act on business principles with due regard to public interest.

(4) In the discharge of its functions under this Act, the Exim Bank shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.

Section 6. Constitution of Board

(1) The Board of Directors of the Exim Bank shall consist of the following, namely:--

(a) a chairman and a managing director appointed by the Central Government:

Provided that the same person may be appointed to function both as chairman and as managing director;

(b) one director nominated by the Reserve Bank;

(c) one director nominated by the Development Bank;

(d) one director nominated by the Export Credit and Guarantee Corporation Limited, being a Government Company within the meaning of Section 617 of the Companies Act, 1956;

(e) not more than twelve directors nominated by the Central Government of whom--

(i) five directors shall be officials of the Central Government;

(ii) not more than three directors shall be from the scheduled banks;

(iii) not more than four directors shall be persons who have special knowledge of, or professional experience in, export or import or financing thereof.

(2) The chairman and the managing director shall hold office for such term, not exceeding 1[five years], as the Central Government may specify in this behalf and any person so appointed shall be eligible for re-appointment.

(3) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the term of office of the chairman or the managing director, as the case may be, at any time before the expiry of the term specified under sub-section (2), by giving him notice of not less than three months in writing or three months' salary and allowances in lieu thereof, and the chairman or the managing director, as the case may be, shall also have the right to relinquish his office at anytime before the expiry of the term specified under sub-section (2) by giving to the Central Government notice of not less than three months in writing or three months' salary and allowances in lieu thereof.

(4) The chairman and the managing director shall receive such salary and allowances as may be determined by the Central Government.

(5) The Central Government may, at any time, remove the chairman or the managing director, as the case may be, from office:

Provided that no person shall be removed from his office under this sub-section unless he has been given an opportunity of showing cause against his removal.

2[(6) Subject to the provisions contained in sub-section (7), any director nominated under clause (b) or clause (c) or clause (d) or clause (e) of sub-section (1) and not being an official of Government or not being a wholetime director or official of the Reserve Bank or the Development Bank or the said Export Credit and Guarantee Corporation Limited or a scheduled bank, shall hold office for such term, not exceeding three years, as the Central Government or, as the case may be, the authority nominating him, may specify in this behalf 4[***], and shall be eligible for re-nomination.

Provided that no such director shall hold office continuously for a period exceeding six years.]

(7) Any 3[***] director nominated under this section shall hold office during the pleasure of the authority nominating him.

(8) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.

(9) The chairman or, if for any reason he is unable to attend a meeting of the Board, the managing director or, in the event of both the chairman and the managing director being unable to attend a meeting, any other director nominated by the chairman in this behalf and in the absence of such nomination any director elected by the directors present from among themselves, shall preside at the meeting.

(10) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the chairman, or in his absence, the managing director, or in the absence of both the chairman and the managing director, the person presiding, shall have and exercise a second or casting vote.

(11) Save as otherwise provided in sub-section (10), every director of the Board shall have one vote.

1. Substituted for the words "three years" by Banking (Amendment) Act (81 of 1985), S. 16 (1-5-86).

2. Substituted for sub-sec. (6) by Banking, Public Institutions and Negotiable Instruments (Amendment) Act (66 of 1988), S. 39 (30-12-88).

3. Word "other" omitted by Banking, Public Institutions and Negotiable Instruments (Amendment) Act (66 of 1988), S. 39 (30-12-88).

4.The following words "and thereafter until his successor enters upon his office"are omitted by the Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws (Amendment) Act, 2006, w.e.f. 16.10.2006.


Section 7. Committees

(1) The Board may constitute such Committees whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons for such purpose or purposes as it may think fit.

(2) Any Committee constituted under sub-section (1) shall meet at such times and places and shall observe such rules or procedure in regard to the transaction of business at its meeting as may be prescribed.

Section 8. Fees and allowances of directors and members of Committees

The directors and the members of a Committee shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any Committee constituted in pursuance of this Act and for attending to any other work of the Exim Bank:

Provided that no fees shall be payable to the chairman, if he is appointed as a whole-time chairman, or to the managing director or to any other director or member who is an official of the Government, the Reserve Bank or the Development Bank.

Section 9. Disqualifications

No person shall be a director of the Board constituted under this Act, who --

(a) is, or at any time has been, adjudged insolvent, or

(b) is of unsound mind and has been so declared by a competent court, or

(c) is, or has been, convicted of an offence which, in the opinion of the Central Government, involves moral turpitude, or

(d) has, in the opinion of the Central Government, so abused his position as a director, as to render his continuance on the Board detrimental to the interests of the General public, or

(e) has been, for any reason, removed from the Board.

Chapter 4

Section 10. Business of Exim Bank

(1) The Exim Bank may grant in or outside India loans and advances by itself or in participation with any bank or financial institution whether in or outside India for the purposes of export or import and shall also function as the principal financial institution for co-ordinating the working of institutions engaged in financing of the export and import in such manner as it may deem appropriate.

(2) The Exim Bank may also carry on and transact all or any of the following kinds of businesses, namely:-

(a) granting loans and advances to a scheduled bank or any other bank or financial institution notified in the Official Gazette by the Central Government in this behalf by way of refinance of loans and advances granted by it for purpose of export or import;

(b) underwriting the issue of stocks, bonds or debentures of any company engaged in export or import;

(c) issuing bid bonds or guarantees in or outside India by itself or in participation with any government, bank or financial institution in or outside India;

(d) accepting, collecting, discounting, rediscounting, purchasing, selling or negotiating in or outside India, bills of exchange or promissory notes arising out of transactions relating to export of import and granting of loans and advances in or outside India against such bills or promissory notes;

(e) granting, opening, issuing, confirming or endorsing letters of credit and negotiating or; collecting bills and other documents drawn thereunder.

(f) undertaking any transaction involving a combination of government to government and commercial credit for purposes of export or import;

(g) granting lines of credit to the government of any foreign State or any financial institution or person outside India for purposes of export or import;

(h) granting loans and advances outside India for any Indian joint venture;

(i) granting loans and advances to any person in India in connecting with his equity contribution in any joint venture in any country outside India;

(j) financing export or import of machinery and equipment on lease basis;

(k) subscribing to, or investing in, or purchasing of stocks, shares, bonds or debentures of any development bank or Export-Import Bank of any country outside India;

(l) buying or selling of, or entering into such other dealings in, foreign exchange, as may be necessary for the discharge of its functions;

(m) opening of any account in any bank in or outside India or the making of any agency arrangement with, or acting as an agent or correspondent of, any bank or other institution in or outside India;

(n) transferring, for consideration, any instrument relating to loans and advances granted by it;

(o) issuing participation certificates;

(p) subscribing to, or investing in, or purchasing of stocks, bonds or debentures to the extent necessary for the enforcement of a lien, pledge or other contractual right;

(q) undertaking and financing of research, surveys, techno-economic or any other study in connection with the promotion and development of international trade;

(r) providing technical, administrative and financial assistance of any kind for export or import;

(s) planning, promoting, developing and financing export-oriented concerns;

(t) forming or conducting subsidiaries for carrying out its functions;

(u) acting as agent of the Central Government, any State Government, the Reserve Bank, the Development Bank or any other person as the Central Government may authorise;

(v) collecting, compiling and disseminating market and credit information in respect of international trade;

(w) doing any other kind of business which the Central Government may authorise;

(x) generally doing such other acts and things as may be incidental to, or consequential upon, the exercise of its powers or the discharge of its duties under this Act or any other law for the time being in force, including sale or transfer of any of its assets.

(3) The Exim Bank may receive in consideration of any of the services mentioned in sub-sections (1) and (2) such commission, brokerage, interest, remuneration of fees as may be agreed upon.

(4) The Exim Bank shall not grant any loan or advance or other financial accommodation on the security of its own bonds or debentures.