Page 13 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes 1.5.2 Export Import Bank of India (EXIM Bank)

Set up by an Act of Parliament in September 1981, EXIM Bank commenced its operations in
March 1982. It is the principal financial institution in the country for coordinating working of
institutions engaged in financing exports and imports.

Objectives

The business of Exim Bank is to finance Indian exports that lead to continuity of foreign exchange
for India. The banks’ primary objective is to develop commercially viable relationships with a
target set of externally oriented companies by offering them a comprehensive range of products
and services, aimed at enhancing their internationalization efforts.

1.5.3 National Housing Bank (NHB)

It was established on 9.7.1988 as wholly owned subsidiary of RBI under an Act of the Parliament
viz, National Housing Bank Act, 1987 to function as a principal agency to promote Housing
finance institutions and to provide financial and other support to such institutions. Its authorized
capital can be raised to Rs. 500 crores. Its paid up capital at present is Rs. 100 crore. The Act, inter-
alia empowers National Housing Bank to:

Issue directions to housing finance institutions to ensure their growth on sound lines;
Make loans and advances and render any other form of financial assistance to scheduled
banks and housing finance institutions or to any authority established by or under any
Central, State or Provincial Act and engaged in slum improvement; and
Formulate schemes for the purpose of mobilization of resources and extension of credit
for housing.

Objectives

NHB has been established to achieve, inter-alia, the following objectives:
To promote a sound, healthy, viable and cost-effective housing finance system to cater to
all segments of the population and to integrate the housing finance system with the
overall financial system.

To promote a network of dedicated housing finance institutions to adequately serve various
regions and different income groups.
To augment resources for the sector and channelise them for housing.

To make housing credit more affordable.
To regulate the activities of housing finance companies based on regulatory and supervisory
authority derived under the Act.

To encourage augmentation of supply of buildable land and also building materials for
housing and to upgrade the housing stock in the country.
To encourage public agencies to emerge as facilitators and suppliers of serviced land for
housing.

8 LOVELY PROFESSIONAL UNIVERSITY