The foreign trade policy (FTP) also known as EXIM (export-import) policy is regulated by the Foreign Trade Development and Regulation Act, 1992. The main governing body in the matters concerning the EXIM policy is DGFT (Directorate General of Foreign Trade).
EXIM policy is an important topic included under Economic Globalization in ESI paper of RBI Grade B Mains. In this article, we will study important elements that candidates must prepare under the EXIM Policy.
As you already know that the EXIM policy is regulated by the Foreign Trade Development and Regulation Act, 1992. The main objective of this act is to provide the development and regulation of foreign trade by facilitating imports into and augmenting exports from India. Foreign Trade Act has replaced the earlier law known as the imports and Exports (Control) Act 1947.
Now, let us look at the objectives of EXIM policy of India:
Effective January 1, 1982, the Exim Bank was established to take responsibility of the business of global finance branch of the IDBI (Industrial Development Bank of India) and to deliver monetary support to importers and exporters and to serve as a chief financial foundation for collaborating the functioning of other organizations involved in the financing of imports and exports of products and services.
The sanctioned wealth of Exim Bank is Rs. 200 crores and the paid-up asset is Rs. 100 crores completely endorsed by the Central Government.
The Export-Import Bank is administered by a Board comprising of a Chairman, the Managing Director along with 17 Directors signifying distinct areas. They are the Commerce Secretary, Secretary to Banking, Secretary to the Department of Industrial Board, Finance Secretary, Secretary IDBI, Secretary RBI, Secretary ECGC, 3 directors depicting additional scheduled commercial banks, 4 Directors elected from the export society, and three additional symbolizing departments and ministries.
The Exim bank performs the following crucial responsibilities:
These are some of the important concepts in the EXIM policy that you must read for the RBI Grade B Phase-2 exams. Now, with the reopening of the lockdown and announcement of major examinations in October-November, it is being speculated that RBI will soon release its notification with a similar timeline.
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