He also said an amount of Rs.1,300 crore was released to Exim Bank by the government in 2015-16 as capital. New Delhi: The Reserve Bank of India (RBI) has received a proposal from the commerce and industry ministry to use a part of foreign exchange reserves to give long-term loans at low interest rates to the Export-Import Bank of India, or Exim Bank, Parliament was informed on Friday. “With its sound financials and investment grade rating on par with the sovereign, Exim Bank is currently able to command very competitive pricing in its foreign currency debt issues,” he added. He said the RBI offered the unutilized amount under its limit of $5 billion sanctioned to the India Infrastructure Finance Co. Ltd (IIFCL) as a long-term loan to Exim Bank. “The RBI was requested to earmark a portion of forex reserves to Exim Bank for project export finance,” minister of state for finance Santosh Kumar Gangwar said in a written reply to Lok Sabha.

Source: Mint July 22, 2016 18:56 UTC