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CS Professional · Strategic Management and Corporate Finance · Foreign Funding - Institutions

Which of the following best describes the role of the Export-Import Bank of India (EXIM Bank) in foreign funding for Indian companies?

EXIM Bank of India is a specialised financial institution that finances and promotes India's foreign trade and overseas investment, offering export credit and lines of credit abroad. It is neither the central bank, a stock exchange, nor the BRICS multilateral development bank.

  1. AIt is India's central bank regulating foreign exchange reserves and monetary policy
  2. BIt is a stock exchange for listing global depository receipts
  3. CIt is a specialised financial institution that finances and promotes India's foreign trade and overseas investment, including lines of credit abroadCorrect
  4. DIt is a multilateral bank owned by BRICS nations that lends to member governments

Explanation

EXIM Bank of India is a specialised financial institution set up to finance, facilitate and promote international trade, including export credit, overseas investment finance and lines of credit to foreign entities. It does not conduct monetary policy (RBI does), list securities, or function as a BRICS multilateral bank (that is NDB).

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