THE EXPORT-IMPORT BANK OF INDIA ACT, 1981 
__________ 

ARRANGEMENT OF SECTIONS 
__________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

ESTABLISHMENT OF THE EXPORT-IMPORT BANK OF INDIA AND INCORPORATION THEREOF 

CHAPTER II 

3.  Establishment and incorporation of Export-Import Bank of India. 
4.  Authorised capital. 

CHAPTER III 

MANGAEMENT OF THE EXIM BANK 

5.  Management. 
6.  Constitution of Board. 
7.  Committees. 
8.  Fees and allowances of directors and members of Committees. 
9.  Disqualifications. 

10.  Business of Exim Bank. 

CHAPTER IV 

BUSINESS OF THE EXIM BANK 

CHAPTER V 

RESOURCES OF THE EXIM BANK 

11.  Loans by Central Government. 
12.  Borrowings and acceptance of deposits by Exim Bank. 
13.  Loans in foreign currency. 
14.  Grants, donations, etc., to Exim Bank. 

CHAPTER VI 

EXPORT DEVELOPMENT FUND 

15.  Export Development Fund. 
16.  Credits to Export Development Fund. 
17.  Utilisation of Export Development Fund. 
18.  Debits to Export Development Fund. 
19.  Accounts and audit of Export Development Fund. 
20.  Liquidation of Export Development Fund. 

CHAPTER VII 

GENERAL FUND, ACCOUNTS AND AUDIT 

21.  General Fund. 

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SECTIONS 

22.  Preparation of accounts and balance-sheet. 
23.  Disposal of Profits accruing to General Fund. 
24.  Audit. 
25.  Saving. 

CHAPTER VIII 

TRANSFER OF PART OF BUSINESS OF DEVELOPMENT BANK 

26.  Transfer of part of business of Development Bank. 

CHAPTER IX 

MISCELLANEOUS 

27.  Staff of Exim Bank. 
28.  Delegation of powers. 
29.  Returns. 
30.  Obligation as to fidelity and secrecy. 
31.  Defects in appointments not to invalidate acts, etc. 
32.  Arrangement with Exim Bank on appointment of directors to prevail. 
33.  Indemnity of directors 
34.  Protection of action taken in good faith. 
35.  Act 18 of 1891 to apply in relation to Exim Bank. 
36.  Section 34A and section 36AD only of Act 10 of 1949 to apply to Exim Bank. 
37.  [Omitted.] 
38.  Liquidation of Exim Bank. 
39.  Power to make regulations. 
40.  [REPEALED.] 
41.  Power to remove difficulty. 
THE FIRST SCHEDULE. 
THE SECOND SCHEDULE [REPEALED]. 

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THE EXPORT-IMPORT BANK OF INDIA ACT, 1981 

ACT NO. 28 OF 1981 

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:—  

[11th September, 1981.] 

CHAPTER I 

PRELIMINARY 

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  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint, and different dates may be appointed for different provisions of this Act. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Board” means the Board of Directors of the Exim Bank referred to in section 6; 

(b) “Development Bank” means the Industrial Development Bank of India established under the 

Industrial Development Bank of India Act, 1964 (18 of 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 (2 of 1934); 

(i) “scheduled bank” means a bank, for the time being, included in the Second Schedule to the 

Reserve Bank of India Act, 1934 (2 of 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,          

knowhow,  expertises  or  other  skill  with  respect  to  any  patent,  invention,  model,  design,  secret 
formula or process or similar property; 

1.  1st  January  1982,  vide  notification  No.  S.O.  919(E),  dated  29th  December,  1981  (except  section  26),  see  Gazette  of  India, 

Extraordinary, Part II, sec. 3(ii). 

1st March 1982, vide notification No. S.O. 91(E), dated 23rd February, 1982 (in respect of section 26), see Gazette of India, 
Extraordinary, Part II, sec. 3(ii)  

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

(IV) making available any other resources. 

CHAPTER II 

ESTABLISHMENT OF THE EXPORT-IMPORT BANK OF INDIA AND INCORPORATION THEREOF 

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. 

4. Authorised capital.—1[(1) The authorised capital of the Exim Bank shall be ten thousand crores of 

rupees: 

Provided that the Central Government may, by notification, increase the said capital up to an amount 

that it may deem necessary from time to time.] 

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

CHAPTER III 

MANAGEMENT OF THE EXIM BANK 

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. 

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; 

2[(aa) two whole-time directors appointed by the Central Government;] 

1. Subs. by Act 11 of 2012, s. 2, for sub-section (1) (w.e.f. 1-2-2012). 
2. Ins. by s. 3, ibid. (w.e.f. 1-2-2012). 

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(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 (1 of 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 1[or the whole-time director] shall hold office for such 
term, not exceeding 2[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,  1[or  the  whole-time 
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, 1[or the whole-time director] as the case may be, shall 
also  have  the  right  to  relinquish  his  office  at  any  time  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 1[or  the  whole-time  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,                   

1[or the whole-time 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. 

3[(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 whole-time 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 5***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 1[or the whole-time director] or, in the event of both the chairman and the managing director 1[or 
the whole-time director] being unable to attend a meeting, any other director nominated by the chairman 

1. Ins. by Act 11 of 2012, s. 3 (w.e.f. 1-2-2012)                                                                                                                                         
2. Subs. by Act 81 of 1985, s. 16, for “three years” (w.e.f. 1-5-1986). 
3. Subs. by Act 66 of 1988, s. 39, for sub-section (6) (w.e.f. 30-12-1988). 
4. The words “and thereafter until his successor enters upon his office” omitted by Act 45 of 2006, s. 18 (w.e.f. 16-10-2006). 
5. The word “other” omitted by Act 66 of 1988, s. 39 (w.e.f 30-12-1988).   

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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, 1[or the whole-time director] or in the absence of both the chairman and 
the  managing  director, 1[or  the  whole-time  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. 

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. 

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 1[or the  whole-time  director] or  to  any  other  director  or  member  who is an 
official of the Government, the Reserve Bank or the Development Bank. 

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 IV 

BUSINESS OF THE EXIM BANK 

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  business, 

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,  shares,  bonds  or  debentures  of  any  company  engaged  in 

export or import; 

1. Ins. by Act 11 of 2012, s. 4 (w.e.f. 1-2-2012). 

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(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,  re-discounting,  purchasing,  selling  or  negotiating  in  or 
outside India, bills of exchange or promissory notes arising out of transactions relating to export or 
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 connection 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,  shares,  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  or  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. 

7 

 
CHAPTER V 

RESOURCES OF THE EXIM BANK 

11. Loans by Central Government.—The Central Government may, after due appropriation made 

by Parliament by law in this behalf, advance to the Exim Bank— 

(a) a loan of twenty crores of rupees at a rate of interest of five and a quarter per cent. per annum 
repayable in fifteen equal annual instalments, commencing on the expiry of a period of fifteen years 
from the date of receipt of the loan; and 

(b) such further sums of money by way of loan on such terms and conditions as may be agreed 

upon: 

Provided  that  the  Central  Government  may,  on  a  request  being  made  to  it  by  the  Exim  Bank, 
increase the number of instalments or alter the amount of any instalment or vary the date on which 
any instalment is payable under clause (a). 

12.  Borrowings  and  acceptance  of  deposits  by  Exim  Bank.—(1)  The  Exim  Bank  may,  for  the 

purposes of carrying out its functions under this Act,— 

(a) issue and sell bonds and debentures with or without the guarantee of the Central Government; 

(b) borrow money from the Reserve Bank— 

(i) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the 
date on which the money is so borrowed against the security of stocks, funds and securities (other 
than immovable property) in which a trustee is authorised to invest trust money by any law for 
the time being in force in India; 

(ii) against bills of exchange or promissory notes arising out of bona fide commercial or trade 
transactions  and  bearing  two  or  more  good  signatures  and  maturing  within  five  years  from  the 
date of the borrowing; 

(iii)  out  of  the  National  Industrial  Credit  (Long  Term  Operations)  Fund  established  under 
section 46C of the Reserve Bank of India Act, 1934 (2 of 1934) for any of the purposes specified 
in that section; 

(c) borrow money from such other authority, organisation or institution in India as may generally 

or specially be approved by the Central Government; 

(d)  accept  deposits  repayable  after  the  expiry  of  a  period  which  shall  not  be  less  than  twelve 
months  from  the  date  of  the  making  of  the  deposit on  such terms  as  may  generally  or  specially  be 
approved by the Reserve Bank. 

(2)  The  Central  Government  may,  on  a  request  being  made  to  it  by  the  Exim  Bank,  guarantee  the 
bonds and debentures issued by that Bank as to the repayment of principal and the payment of interest at 
such rate as may be fixed by that Government. 

13.  Loans  in  foreign  currency.—Notwithstanding  anything  contained  in  the  Foreign  Exchange 
Regulation  Act,  1973  (46  of  1973)  or  in  any  other  law  for  the  time  being  in  force  relating  to  foreign 
exchange, the Exim Bank  may, for the purpose of granting loans and advances under this Act, borrow, 
with the previous  consent of  the  Central  Government,  foreign  currency  from  any  foreign  State  or  from 
any bank or financial institution in any foreign country or otherwise. 

14. Grants, donations, etc., to Exim Bank.—The Exim Bank may receive gifts, grants, donations or 

benefactions from Government or any other source in or outside India. 

CHAPTER VI 

EXPORT DEVELOPMENT FUND 

15.  Export  Development  Fund.—With  effect  from  such  date as  the  Central  Government  may,  by 
notification, appoint, the Exim Bank shall establish a special fund to be called the Export Development 
Fund. 

8 

 
16. Credits to Export Development Fund.—To the Export Development Fund shall be credited— 

(a) all amounts received for the purposes of that Fund by way of loans, gifts, grants, donations or 

benefactions from Government or any other source in or outside India; 

(b)  repayments  or  recoveries  in  respect  of  loans,  advances  or  other  facilities  granted  from  the 

Fund; 

(c) income or profits from investments made from the Fund; and 

(d)  income  accruing  or  arising  to  the  Fund  by  way  of  interest  or  otherwise,  on  account  of  the 

application of the Fund in accordance with the provisions of section 17. 

17. Utilisation of Export Development Fund.—(1) Where the Exim Bank considers it necessary or 
desirable so to do, it may, subject to the provisions of sub-sections (2) and (3), disburse or spend from the 
Export Development Fund any amount on account or in consequence of the grant of any loan or advance, 
or on account or in consequence of entering into any arrangement under sub-section (1) or clause (b) or 
clause  (c)  or  clause  (d)  or  clause  (q)  or  clause  (r)  or  clause  (s)  or  clause  (w)  or  clause  (x)  of                          
sub-section (2) of section 10: 

Provided that  before  granting  any  such  loan  or  advance  or entering  into any  such  arrangement,  the 

Exim Bank shall obtain the prior approval of the Central Government. 

(2)  Before  seeking  the  approval  of  the  Central  Government  under  sub-section  (1),  the  Exim  Bank 
shall satisfy itself that banking or other financial institutions or other agencies are not likely to grant such 
loan or advance, or to enter into any such arrangement in the ordinary course of business. 

(3) The Central Government shall, before giving its approval, satisfy itself that such loan, advance or 

arrangement is necessary as a matter of priority in the interests of the international trade of the country. 

(4)  For  the  removal  of  doubts,  it  is  hereby  declared  that  nothing  contained  in  this  section  shall  be 
deemed  to  preclude  the  Exim  Bank  from  granting  any  loan  or  advance  or  from  entering  into  any 
arrangement under sub-section (1) or clause (b) or clause (c) or clause (d) or clause (q) or clause (r) or 
clause (s) or clause (w) or clause (x) of sub-section (2) of section 10 without the approval of the Central 
Government,  if  no  amount  in  respect  thereof  is to  be  disbursed  or  spent  from  the  Export  Development 
Fund. 

18. Debits to Export Development Fund.—(1) To the Export Development Fund shall be debited— 

(a)  such  amounts  as  may  from  time  to  time  be  disbursed  or  spent  under  sub-section  (1)  of            

section 17; 

(b) such amounts as may be required for discharging the liabilities in respect of loans received for 

the purposes of that Fund; 

(c) any loss arising on account of investment made out of that Fund; and 

(d) such expenditure arising out of, or in connection with, the administration and application of 

the Fund as may be determined by the Board. 

(2)  No  amount  shall  be  debited  to  the  Export  Development  Fund  except  as  provided  for  in                     

sub-section (1). 

19. Accounts and audit of Export Development Fund.—(1) The balance-sheet and accounts of the 

Export Development Fund shall be prepared in such form and manner as may be prescribed. 

(2) The Board shall cause the books and accounts of the Export Development Fund to be closed and 

balanced as on the 31st day of December each year . 

(3) The Export Development Fund shall be audited by one or more auditors appointed by the Central 

Government under section 24 who shall make a separate report thereon. 

(4) The provisions of sub-sections (2), (3), (4) and (6) of section 24 shall, so far as may be, apply in 

relation to the audit of the Export Development Fund. 

9 

 
(5)  The  Exim  Bank  shall  furnish  to  the  Central  Government,  within  four  months  from  the  date  on 
which the accounts of the Export Development Fund are closed and balanced, a copy of the balance-sheet 
and accounts together with a copy of the auditors’ report and a report on the operation of the Fund during 
the relevant year and the Central Government shall, as soon as may be after they are received by it, cause 
the same to be laid before each House of Parliament. 

20. Liquidation of Export Development Fund.—The Export Development Fund shall not be closed 
or  wound  up  save  by  order  of  the  Central  Government  and  in  such  manner  as  that  Government  may 
direct. 

CHAPTER VII 

GENERAL FUND, ACCOUNTS AND AUDIT 

21. General Fund.—All receipts of the Exim Bank other than those which are to be credited to the 
Export Development Fund under this Act shall be credited to a Fund to be called the General Fund and all 
payments by the Exim Bank, other than those which are to be debited to the Export Development Fund, 
shall be made out of the General Fund. 

22. Preparation of accounts and balance-sheet.—(1) The balance-sheet and accounts of the Exim 

Bank shall be prepared in such form and manner as may be prescribed. 

(2) The Board shall cause the books and accounts of the Exim Bank to be closed and balanced as on 

the 31st day of December each year. 

23. Disposal of Profits accruing to General Fund.—(1) The Exim Bank  may establish a Reserve 
Fund to which may be transferred such sums as that Bank may deem fit out of the annual profits accruing 
to the General Fund. 

(2) After making provision for bad and doubtful debts, depreciation of assets and for all other matters 
for  which  provision  is  necessary  or  expedient  or  which  is  usually  provided  for  by  bankers  and  for  the 
Reserve Fund referred to in sub-section (1), the Exim Bank shall transfer the balance of the net profits to 
the Central Government. 

24. Audit.—(1) The accounts of the Exim Bank shall be audited by auditors duly qualified to act as 
auditors  under  sub-section  (1)  of  section  266  of  the  Companies  Act,  1956  (1  of  1956),  who  shall  be 
appointed by the Central Government for such term and on such remuneration as the Central Government 
may fix. 

(2) The auditors shall be supplied with a copy of  the annual balance-sheet of the Exim Bank and it 
shall be their duty to examine it together with the accounts and vouchers relating thereto and they shall 
have a list delivered to them of all books kept by the Exim Bank and shall at all reasonable times have 
access to the books accounts, vouchers and other documents of the Exim Bank. 

(3)  The  auditors  may,  in  relation  to  such  accounts,  examine  any  director  or  any  officer  or  other 
employee of the Exim Bank and shall be entitled to require from the Board or officer or other employee 
of the Exim Bank such information and explanation as they may think necessary for the performance of 
their duties. 

(4) The auditors shall make a report to the Exim Bank upon the annual balance-sheet and accounts 
examined by them and in every such report they shall state whether in their opinion the balance-sheet is a 
full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a 
true and fair view of the state of affairs of the Exim Bank and in case they had called for any explanation 
or information from the Board or any officer or other employee of the Exim Bank whether it has been 
given and whether it is satisfactory. 

(5)  The  Exim  Bank  shall  furnish  to  the  Central  Government  within  four  months  from  the  date  on 
which its accounts are closed and balanced, a copy of its balance-sheet and accounts together with a copy 
of  the  auditors’  report  and  a  report  of  the  working  of  the  Exim  Bank  during  the  relevant  year,  and  the 
Central  Government  shall,  as  soon  as  may  be,  after  they  are  received  by  it,  cause  the  same  to  be  laid 
before each House of Parliament. 

10 

 
(6) Without  prejudice to anything  contained in the preceding  sub-sections,  the Central  Government 
may, at any time, appoint the Comptroller and Auditor-General of India to examine and report upon the 
accounts of the Exim Bank and any expenditure incurred by him in connection with such examination and 
report shall be payable by the Exim Bank to the Comptroller and Auditor-General of India. 

25. Saving.—Save as otherwise provided in sub-section (4) of section 19, nothing contained in this 

Chapter shall apply to the Export Development Fund. 

CHAPTER VIII 

TRANSFER OF PART OF BUSINESS OF DEVELOPMENT BANK 

26.  Transfer  of  part  of  business  of  Development  Bank.—(1)  On  such  date  as  that  Central 
Government  may,  by  notification,  appoint,  all  business,  property,  assets  and  liabilities,  rights,  interests, 
privileges  and  obligations  of  whatever  nature  of  the  Development  Bank  in  so  far  as  they  relate  to  the 
export financing functions of that Bank shall stand transferred to, and vest in, the Exim Bank. 

(2) For the transfer to, and vesting in, the Exim Bank under sub-section (1), the Exim Bank shall pay 
to  the  Development  Bank  such  amount  in  such  manner  and  in  such  number  of  instalments  as  may  be 
determined by the Central Government. 

(3)  All  contracts,  deeds,  bonds,  agreements,  powers-of-attorney,  grants  of  legal  representation  and 
other  instruments  of  whatever  nature  of  the  Development  Bank  which  relate  to  the  export  financing 
functions of that Bank and which are subsisting or having effect immediately before the date referred to in                   
sub-section (1) and to which the said Bank is a party or which are in favour of that Bank shall,— 

(a) if they relate exclusively to the export financing functions of that Bank, be of full force and 
effect against or in favour of the Exim Bank, as the case may be, and may be enforced and acted upon 
as fully and effectively as if instead of the Development Bank the Exim Bank had been a party thereto 
or as if they had been issued in favour of the Exim Bank; and 

(b) if they relate not only to the export financing function of the Development Bank but also to 
any  of the other functions of that  Bank,  be  of  full  force  and  effect  against  or  in  favour  of  both  the 
Development Bank and the Exim Bank and may be enforced or acted upon as fully and effectively as 
if in addition to the Development Bank the Exim Bank had also been a party thereto or as if they had 
been issued in favour of the Development Bank and also the Exim Bank. 

(4) If, on the date referred to in sub-section (1), any suit, appeal or other legal proceeding of whatever 
nature relating to the export financing functions of the Development Bank is pending, the same shall not 
abate, be discontinued or be in any way prejudicially affected by reason of the transfer to the Exim Bank 
of the business of the Development Bank or of anything contained in this Act, but the suit, appeal or other 
proceeding may,— 

(a)  where  it  relates  exclusively  to  the  export  financing  functions  of  the  Development  Bank,  be 

continued, prosecuted and enforced by or against the Exim Bank; and 

(b) where it relates not only to the export financing functions of the Development Bank but also to 
any  of  the  other  functions  of  that  Bank,  be  continued,  prosecuted  and  enforced  by  or  against  the 
Development  Bank  and  the  Exim  Bank  or,  if  the  Central  Government  by  special  order  in  writing  so 
directs, by or against such one of the said two Banks, as may be specified in such order. 

(5)  If  any  question  arises  as  to  whether  any  contract,  deed,  bond,  agreement,  powers-of-attorney, 
grant of legal representation or other instrument referred to in sub-section (3) or any suit, appeal or other 
legal  proceeding  referred  to  in  sub-section  (4)  relates  or  relates  exclusively  to  the  export  financing 
functions of the Development Bank, it shall be referred to the Central Government for decision and the 
decision of the Central Government thereon shall be final. 

(6)  The  provisions  of  this  section  shall  have  effect  notwithstanding  anything  contained  in  the 
Industrial Development Bank of India Act, 1964 (18 of 1964) or any other law or any instrument having 
force by virtue of the said Act or other law. 

11 

 
 
CHAPTER IX 

MISCELLANEOUS 

27.  Staff  of  Exim  Bank.—(1)  The  Exim  Bank  may  appoint  such  number  of  officers  and  other 
employees  as  it  considers  necessary  or  desirable  for  the  efficient  performance  of  its  functions  and 
determine the terms and conditions of their appointment and service. 

(2)  Without  prejudice  to  the  provisions  of  sub-section  (1),  it  shall  be  lawful  for  the  Exim  Bank  to 
utilise, and for the Development Bank to make available the services of, such staff of the Development 
Bank  having  experience relating  to  export  financing  functions  on such  terms  and  conditions  as  may  be 
agreed upon between the Exim Bank and the Development Bank. 

(3) The duties and conduct, terms and conditions of service and the establishment and maintenance of 
a Provident Fund or any other Fund for the benefit of the officers and other employees of the Exim Bank 
shall be such as may be prescribed. 

28. Delegation of powers.—The Board may, be general or special order, delegate to any director or 
any officer or other employee of the Exim Bank, subject to such conditions and limitations, if any, as may 
be specified in the order, such of its powers and functions under this Act as it may deem necessary. 

29.  Returns.—The  Exim  Bank  shall  furnish,  from  time  to  time,  to  the  Central  Government  such 

returns as the Central Government may require. 

30.  Obligation  as  to  fidelity  and  secrecy.—(1)  The  Exim  Bank  shall  not,  except  as  otherwise 
required  by  this  Act  or  any  other  law,  divulge  any  information  relating  to,  or  to  the  affairs,  of,  its 
constituents  except  in  circumstances  in  which  it  is,  in  accordance  with  the  law  or  practice  and  usage 
customary among bankers, necessary or appropriate for the Exim Bank to divulge such information. 

(2) The Exim Bank may, for the purpose of efficient discharge of its functions under this Act, collect 
from, or furnish to, the Central Government, the Development Bank or any scheduled bank or such other 
financial institution, as may be notified in the Official Gazette by the Central Government in this behalf, 
credit information or other information as it may consider useful for the purpose, in such manner and at 
such times, as it may think fit. 

Explanation.—For the purpose of this sub-section, the expression “credit information” shall have the 
same meaning as in clause (c) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934), subject 
to the  modification  that  “banking  company”  referred to therein  shall  mean the Development  Bank,  any 
scheduled bank or other financial institution as aforesaid. 

(3) Every director, member of a committee, auditor or officer or other employee of the Exim Bank or 
of the Development Bank whose services are utilised by the Exim Bank under the provisions of this Act, 
shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the 
First Schedule. 

1[(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit 

Information Companies (Regulation) Act, 2005.] 

31. Defects in appointments not to invalidate acts, etc.—(1) No act or proceeding of the Board or 
of  any  committee  of  the  Exim  Bank  shall  be  questioned  on  the  ground  merely  of  the  existence  of  any 
vacancy in, or defect in the constitution of, the Board or the committee, as the case may be. 

(2) No act done by any person acting in good faith as a director shall be deemed to be invalid merely 
on  the  ground  that  he  was  disqualified  to  be  a  director  or  that  there  was  any  other  defect  in  his 
appointment. 

32.  Arrangement  with  Exim  Bank  on  appointment  of  directors  to  prevail.—(1)  Where  any 
arrangement entered into by the Exim Bank with a company provides for the appointment by the Exim 
Bank of one or more directors of such company, such provisions and any appointment of directors made 
in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the 

1. Ins. by Act 30 of 2005, s. 34 and the Schedule (w.e.f. 14-12-2006). 

12 

 
                                                           
Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, 
articles of association or any other instrument relating to the company, and any provision regarding share 
qualification, age-limit, number of directorships, removal from office of directors and such like conditions 
contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Exim 
Bank in pursuance of the arrangement as aforesaid. 

(2) Any director appointed as aforesaid shall— 

(a) hold office during the pleasure of the Exim Bank and may be removed or substituted by any 

person by order in writing of the Exim Bank; 

(b) not incur any obligation or liability by reason only of his being a director or for anything done 
or omitted to be done in good faith in the discharge of his duties as a director or anything in relation 
thereto; 

(c) not be liable to retirement by rotation and shall not be taken into account for computing the 

number of directors liable to such retirement. 

33. Indemnity of directors.—(1) Every director shall be indemnified by the Exim Bank against all 
losses and expenses incurred by him, in, or in relation to, the discharge of his duties, except such as are 
caused by his own wilful act or default. 

(2) A director shall not be responsible for any other director or for any officer or other employees of 
the  Exim  Bank  or  for  any  loss  or  expenses  resulting  to  the  Exim  Bank  from  the  insufficiency  or 
deficiency of the value of, or title to, any property or security acquired or taken on behalf of the Exim 
Bank or the insolvency or wrongful act of any debtor or any person under obligation to the Exim Bank or 
anything done in good faith in the execution of the duties of his office or in relation thereto. 

34. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against the 
Exim  Bank  or  any  director  or  any  officer  or  other  employee  of  the  Exim  Bank  or  any  other  person 
authorised by the Exim Bank to discharge any functions under this Act for any loss or damage caused or 
likely to be caused by anything which is in good faith done or  intended to be done in pursuance of this 
Act or any other law or provision having the force of law. 

35. Act 18 of 1891 to apply in relation to Exim Bank.—The Bankers’ Books Evidence Act, 1891 

shall apply in relation to the Exim Bank as if it were a Bank as defined in section 2 of that Act. 

36.  Section  34A  and  section  36AD  only  of  Act  10  of  1949  to  apply  to  Exim  Bank.—Nothing 
contained in the Banking Regulation Act, 1949, except section 34A and section 36AD thereof, shall apply 
to the Exim Bank. 

37.  [Act  43  of  1961  and  Act  7  of  1964  not  to  apply  to  Exim  Bank.]  Omitted  by  Finance  Act,  1998               

(21 of 1998) s. 117 (w.e.f. 1-4-1999). 

38. Liquidation of Exim Bank.—No provision of any law relating to the winding up of companies 
or corporations shall apply to the Exim Bank and the Exim Bank shall not be placed in liquidation save by 
an order of the Central Government and in such manner as it may direct. 

39.  Power  to  make  regulations.—(1)  The  Board  may,  with  the  previous  approval  of  the  Central 
Government, make  regulations  not  inconsistent  with  this  Act  to  provide  for  all  matters  for  which 
provision is necessary or expedient for the purpose of giving effect to the provisions of this Act. 

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may 

provide for— 

(a) the times and places of the meetings of the Board or of any committee constituted under this 
Act  and  the  procedure  to  be  followed  at  such  meetings  including  the  quorum  necessary  for  the 
transaction of business; 

(b) the fees and allowances that may be paid to the directors and the members of a committee; 

13 

 
 
 
(c) the form and manner in which the balance-sheets and the account of the Export Development 

Fund and the Exim Bank shall be prepared; 

(d)  the  duties  and  conduct,  and  the  terms  and  conditions  of  service  of  the  officers  and  other 

employees of the Exim Bank; 

(e) the establishment and maintenance of provident fund or any other fund for the benefit of the 

officers and other employees of the Exim Bank; and 

(f) any other matter which is to be, or may be, prescribed. 

(3)  Every  regulation  made  by  the  Board  under  this  Act  shall  be  laid,  as  soon  as  may  be  after  it  is 
made, before each House of Parliament, while it is in session, for a total period of thirty days which may 
be comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the regulation or both Houses agree that the regulation should not be made, the regulation 
shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, 
that any such modification or annulment shall be without prejudice to the validity of anything previously 
done under that regulation. 

40. [Amendment of certain enactments.]—Rep. by Repealing and Amending Act, 1988 (19 of 1988),              

s. 2, and the First Schedule (w.e.f. 31-3-1988). 

41.  Power  to  remove  difficulty.—If  any  difficulty  arises  in  giving  effect  to  the  provisions  of  this 
Act, the Central Government may, by order, do anything, not inconsistent with such provisions, for the 
purpose of removing the difficulty: 

Provided that no such order shall be made after the expiration of three years from the date on which 

this Act receives the assent of the President. 

14 

 
 
 
THE FIRST SCHEDULE 

[See section 30(3)] 

DECLARATION OF FIDELITY AND SECRECY 

I…………..,  do  hereby  declare  that  I  will  faithfully,  truly  and  to  the  best  of  my  skill  and  ability 
execute  and  perform  the  duties  required  of  me  as  director,  member  of………….committee,  auditor, 
officer or other employee (as the case may be) of the Export-Import Bank of India and which properly 
relate to the officer or position held by me in or in relation to the said Exim Bank. 

I further declare that I will not communicate or allow to be communicated to any person not legally 
entitled thereto any information relating to the affairs of the Export-Import Bank of India or to the affairs 
of any person having any dealing with the said Exim Bank, nor will I allow any such person to inspect or 
have  access  to  any  books  or  documents  belonging  to  or  in  the  possession  of  the  said  Exim  Bank  and 
relating to the business of the said Exim Bank or the business of any person having any dealing with the 
said Exim Bank. 

(Signature) 

Signed before me. 

[THE SECOND SCHEDULE]. Rep. by the Repealing and Amending Act,  1988 (19 of 1988), s. and the 
First Schedule (w.e.f. 31-3-1988). 

15 

 
 
 
 
 
