RBI asked to use forex reserves to provide long term loans at low interest rates to EXIM Bank

Q.  RBI has received a proposal for providing long term loans at low interest rates to which public sector bank?
- Published on 25 Jul 16

a. SBI
b. OCI
c. PNB
d. EXIM Bank

ANSWER: EXIM Bank
 
RBI has received a proposal from the Commerce and Industry Ministry to use part of the forex reserves to provide long term loans at low interest rates to the Export Import Bank of India
  • A portion of the forex reserves have been asked to be set aside for project export finance for the EXIM Bank.
  • RBI offered the un-utilised amount under its limit of USD 5 billion to the India Infrastructure Finance Company as a long term loan to EXIM Bank.
  • IIFCL indicated RBI committed the entire quantum of USD 5 billion to borrowers and there would not be any residual or un-utilised amount offered to EXIM bank.
  • EXIM Bank has been able to command competitive pricing in its foreign currency debt issues.
  • Amount of INR 1300 crore was released to the EXIM Bank by the government as capital in 2015-2016.

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