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Exim Bank of India represents a rare case of an institution where the concept and need for such an institution had been debated for a long period-more than two decades – before it was finally set up in 1982. The two decades prior to the establishment of Exim Bank witnessed significant changes in the industrial and the trade scenario. Indian exports during the fifties and the early sixties consisted of primary commodities and traditional manufactures like jute and cotton textiles. The dominant viewpoint was that in India’s case, expansion in domestic demand alone could realistically serve as the engine for economic growth, since export expansion opportunities were limited and there were fundamental constraints (like inadequate infrastructure) to export growth. The ideology relating to the manufacturing sector was to promote industrialization through import substitution. As a result, the export sector remained neglected with a small share in India’s GDP.
Nevertheless, the process of industrial development in India promoted through the import substitution strategy provided an impetus to the growth of a large and diversified industrial base, particularly the engineering industry. A number of emerging industrial sub-sectors also proved to be internationally competitive. The change in India’s export profile commenced slowly in the sixties with a growing share of non-traditional manufactured goods and value-added products.
During 1978-79, the Ministry of Finance convened meetings to discuss the proposal regarding setting up of an Export-Import Bank. At these meetings, it was agreed that there was a justification for a separate institution on the ground that it would be able to devote concentrated attention to the needs of exporters and explore new methods for augmenting credit on reasonable terms. It could also concern itself with investment finance required for export production.
By 1980, engineering goods exports had grown to constitute 13 per cent of Indian exports. Project exports were also buoyant. The growing demand of project exporters for an Exim Bank, vigorous support from the Ministry of Commerce and increasing emphasis on export promotion combined to push the government into taking a final view. On June 18, 1980, in his budget speech in Parliament, the then Finance Minister, Shri R. Venkataraman, announced the momentous decision to establish an Exim Bank.
Export-Import Bank of India was thus born after two decades of debate on the need for a specialized export credit agency for India and the role of international trade in India’s economic development.
The Export-Import Bank of India Act was passed in September 1981 and the Bank commenced its operations in March 1982.
Today with our rich pedigree, we serve as a growth engine for Indian Businesses range of products and services. This includes import of technology and export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment. In a rapidly shifting financial landscape, we are a catalyst and key player in the promotion of cross border trade and investment.
What is IFSC Code
IFSC is short for Indian Financial System Code and represents the 11 digit character that you can usually see on your bank’s cheque leaves, or other bank sponsored material. This 11 character code helps identify the individual bank branches that participate in the various online money transfer options like NEFT and RTGS.
How to find IFSC Code?
Ways to find IFSC codes
- IFSC code can be found on cheque leaf and bank passbook of the respective bank.
- Banks and respective branch list of IFSC codes can be obtained from Reserve Bank of India’s website.
- The IFSC code of a particular bank can also be found on the banks’ official website.
Benefits of IFSC Code
Benefits of IFSC Code are :
- Helps to identify a Bank and its respective branch
- Eliminates errors in the process of fund transfer
- Transfers done with IFSC such as NEFT, RTGS and IMPS are accurate
What is MICR Code
MICR or Magnetic Ink Character Recognition Code is a 9 digit code used for faster processing of cheques. MICR number is also unique for every bank branch, hence it helps in uniquely identifying the bank and branch participating in an Electronic Clearing System (ECS). MICR Code like IFSC is a combination of 3 essential components:
- The first 3 digits represent the city code.
- The middle 3 represent the particular bank code.
- The last 3 digits represent the specific branch code
Benefits of MICR Code
Benefits of MICR Codes are:
MICR code enables efficient, quick and error-free processing of cheques. This is possible with magnetic ink, reading machines and technology used in MICR.
Difference between IFSC and MICR code
ink character recognition code (MICR) is a technology that enables faster
processing of cheques by recognizing unique characters printed on the cheque.
MICR consists of a 9 digit code. The
first three digits of the MICR code represent the city, the next three give the
bank code and the last three digits denote the branch of the bank. Similar to
an IFSC code, every branch of a bank has a specific MICR code. While IFSC is
used for online fund transactions, MICR is used for cheques.
Let’s understand the difference between IFSC and MICR