India Exim Finserve IFSC Private Limited (Exim Finserve), the subsidiary of the Export-Import Bank of India (Exim Bank), at the Gujarat International Financial Tec City (GIFT City), was inaugurated by Dr. Vivek Joshi, Secretary, Department of Financial Services (DFS), Ministry of Finance, Government of India, on 8th August 2023.
Exim Finserve will extend a comprehensive range of trade finance products to Indian exporters, with a primary focus on export factoring. The factoring services by Exim Finserve will provide a combination of three essential services to exporters: receivables financing, coverage of the risk of non-payment and management of accounts receivable. This would lead to improved cash flow and reduced payment risk for exporters, enabling them to confidently explore new markets and seize growth opportunities. The factoring services would be particularly beneficial for MSME exporters as it is primarily based on the quality of accounts receivable, rather than collateral.
Speaking at the launch event of Exim Finserve, Dr. Vivek Joshi, Secretary, DFS, noted that the subsidiary of Exim Bank, which was announced in the Union Budget 2023 by the Hon’ble Finance Minister, Ms. Nirmala Sitharaman, is another link in the mosaic of efforts being taken by the Government of India to improve access to finance for MSMEs. He mentioned that the launch of Exim Finserve is extremely timely and most suitable given the need of the hour, especially for MSMEs, and expressed confidence in the ability of Exim Finserve to effectively leverage the cohesive and eased framework for factoring services, to meet the requirements of MSME exporters.
Ms. Harsha Bangari, Managing Director, Exim Bank, highlighted that the launch of Exim Finserve aligns with the Bank’s growing focus on meeting the financing gaps faced by MSME exporters. She noted that Exim Finserve, through its factoring services, is set to enhance the export competitiveness of MSMEs as they can offer competitive credit terms to their buyers, without associated risks and cash flow difficulties. Ms. Bangari noted that with the launch of Exim Finserve, Exim Bank is now covering the entire canvas of trade with bank-intermediated trade finance along with open account trade.
In his address, Shri K. Rajaraman, Chairperson, International Financial Services Centres Authority (IFSCA) highlighted the conducive regulatory environment in GIFT City and mentioned that Exim Finserve is the first finance company in GIFT City in the area of export factoring adding the much needed vibrancy in the ecosystem.
During the ribbon-cutting ceremony at Exim Finserve’s office, Shri Tapan Ray, Managing Director & Group CEO, GIFT City, noted that Exim Finserve would further bolster GIFT City’s position as a financial and technological hub.
During the inauguration event, Exim Bank’s study titled “Strengthening Collaborations to Bridge the Trade Finance Gap: Insights for G20 Countries” was also released. The Study notes that the trade finance gap expanded to US$ 2 trillion in 2021/22. Some of the strategies highlighted in the Study to bridge the gap include harmonisation of KYC standards for reducing frictions in cross-border payments; leveraging automation and digitalisation for trade finance; enhancing collaboration among Multilateral Development Banks, Export Credit Agencies and National Development Finance Institutions; exploring alternative trade financing such as supply chain financing solutions; creating a trade finance facility through cooperation among G20 countries; and bridging the data gaps in trade finance to improve trade finance policy design and operation.
The inauguration event was attended by more than 120 participants, including heads of banks/financial institutions, senior bankers and exporters, among others.
About Exim Bank:
Exim Bank was set up in 1981 by an Act of Parliament and is wholly owned by the Government of India. For over four decades, Exim Bank has played a crucial role in financing, facilitating, and promoting India’s international trade and investment. The Bank has emerged as a trusted partner in the globalisation efforts of Indian companies, providing a broad range of support at all stages of the business cycle. As a policy bank, Exim Bank has been instrumental in facilitating the development partnerships of the Government of India, by extending finance to partner countries to meet their development priorities and create a positive socio-economic impact in projects, while concomitantly creating large opportunities for Indian companies in high value-added and technology-intensive sectors.
For further information, please contact:
Mr. Pushpesh Tyagi, MD & CEO, India Exim Finserve IFSC Private Limited, Office F-12, GIFT House, First Floor, Block 12, Road 1-D, Zone-1, GIFT SEZ, GIFT City, Gandhinagar- 382355. E-mail: pushpesh.t@eximfinserve.in