Importance of the News:
The Union Cabinet has approved the recapitalization of Rs. 6000 crore for the EXIM Bank to boost the bank's capacity in export financing. The infusion will give an impetus to anticipate new initiatives like supporting Indian textile industries, likely changes in Concessional Finance Scheme (CFS) etc.
The EXIM Bank:
• Export-Import Bank of India is a wholly owned Govt. of India entity established in 1982.
• Its main aim is financing, facilitating and promoting foreign trade of India. The EXIM Bank extends Line of Credit (LoC) to overseas financial institutions, regional development banks, sovereign governments and other entities abroad.
• It is regulated by the Reserve Bank of India.