The Union Cabinet headed by Prime Minister Narendra Modi has approved a capital infusion of Rs 6,000 crore in state-owned Export-Import Bank of India (Exim) to expand its business.
How the capital infusion would be made?
Key facts about the capital infusion proposal are:
- The government would issue recapitalisation bonds to the tune of Rs 6,000 crore for capital infusion of Exim Bank.
- The capital infusion would take place in two tranches of Rs 4,500 crore in 2018-19 and Rs 1,500 crore in 2019-20 respectively.
- The government has also approved an increase in the bank’s authorised capital from Rs 10,000 crore to Rs 20,000 crore.
Authorised capital refers to the maximum amount of capital for which shares can be issued by a company. The Authorised capital would be mentioned in the Memorandum of Association of the Company and can be increased at any time in future.
The capital infusion and increase in authorised capital give an impetus to new initiatives such as supporting Indian textile industries, likely changes in the Concessional Finance Scheme, likelihood of new letters of credit in future in view of the country’s active foreign policy and strategic intent. This will have a positive impact on increasing the exports of India.
Export-Import Bank of India (Exim Bank)
Exim Bank is a premier export finance institution of India. It was established in 1982 under the Export-Import Bank of India Act to promote the Indian exports. Exim Bank assists the Industries across wide avenues like import of technology, export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment.
Month:Current Affairs - January, 2019 Categories: Business, Economy & Banking Current Affairs • UPSC Current Affairs - 2019
Tags: Authorised capital • Capital Infusion • EXIM Bank • export finance institution • Export-Import Bank of India • Export-Import Bank of India Act • recapitalisation of exim bank
The Union Finance Ministry has started the Know Your Budget series on Twitter to educate the general public about the budgetary process. It is a fortnight series which explains the importance of Union Budget and its making.
With the government set to present the interim Budget for 2019-20, the Know Your Budget series of the Finance Ministry in Twitter aims to increase the general awareness of the public regarding the budgetary process.
Explains Union Budget and Vote on Account
In the first series of tweets under the Know Your Budget fort-night series, the Ministry has made tweets to explain the Union Budget and Vote on Account as:
- Budget is the most comprehensive report of the government’s finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the government’s accounts for the next fiscal year called Budget estimates.
- Vote on Account is explained as a grant made in advance by Parliament for expenditure for a part of the next financial year.
Since the Parliament elections are due, the government would be presenting interim Budget. The Budget for the financial year 2019-20 would be presented by the new government.
Month:Current Affairs - January, 2019 Categories: India Current Affairs 2018 • UPSC Current Affairs - 2019
Tags: Budget estimates • Interim Budget for 2019-20 • Know Your Budget • Twitter • Union Budget • Union Ministry of Finance • Vote on Account