MANGAEMENT OF THE EXIM BANKCentral

Section 5 of The Export-Import Bank of India Act, 1981

Management.

(1)The general superintendence, direction and management of the affairs and business of the Exim Bank shall vest in the Board, which may exercise all powers and do all acts and things which may be exercised or done by the Exim Bank.
(2)Save as otherwise provided in the regulations made under this Act--
1. (a)the chairman, if he is a whole-time director or if he is holding offices both as the chairman and the managing director, or
2. (b)the managing director, if the chairman is not a whole-time director, or, if the chairman being a whole-time director, is absent, shall also have powers of general superintendence, direction and management of the affairs and business of the Exim Bank and may also exercise all powers and do all acts and things which may be exercised or done by the Exim Bank.
(3)Subject to the provisions of this Act, the Board in discharging its functions shall act on business principles with due regard to public interest.
(4)In the discharge of its functions under this Act, the Exim Bank shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.

Summary

The Board of Directors is in charge of managing and directing all the bank's affairs.
The Board can do anything the Exim Bank is allowed to do under this law.
If the Chairman is full-time or also the Managing Director, they hold the power to lead daily operations.
If the Chairman is not full-time or is absent, the Managing Director takes over the management duties.
The Board must follow business principles but also always consider the public interest.
The Central Government can give written directions to the bank on important public policy matters.

Practical examples

1The Board decides to launch a new loan program for small exporters. Since Section 5 gives them the power of general management, they can finalize this plan without needing a specific vote from outside the bank for every detail.

2The Central Government believes that supporting trade with a specific developing nation is a matter of national policy. They send a written direction to the Exim Bank to prioritize loans for that region, and the bank must follow this under Section 5.

FAQ

1. Who is responsible for the day-to-day management of the bank?

The Board of Directors, often led by the Chairman or Managing Director, manages the bank's affairs.

2. Can the Managing Director act as the leader if the Chairman is away?

Yes, if the Chairman is absent, the Managing Director has the power of management.

3. Does the bank run like a regular business or a government office?

It must act on business principles while also paying attention to the public interest.

4. Can the government tell the bank what to do?

Yes, the Central Government can give written directions on policy matters involving public interest.

Test yourself

1.Under Section 5 of The Export-Import Bank of India Act, 1981, in whom does the general superintendence and management of the bank vest?

2.Under Section 5 of The Export-Import Bank of India Act, 1981, what dual standard must the Board follow when performing its duties?

3.According to Section 5 of The Export-Import Bank of India Act, 1981, how does the Central Government provide guidance to the bank on policy?

4.Under Section 5 of The Export-Import Bank of India Act, 1981, who has management powers if a whole-time Chairman is absent?

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