27. Staff of Exim Bank.—(1) The Exim Bank may appoint such number of officers and other
employees as it considers necessary or desirable for the efficient performance of its functions and
determine the terms and conditions of their appointment and service.
(2) Without prejudice to the provisions of sub-section (1), it shall be lawful for the Exim Bank to
utilise, and for the Development Bank to make available the services of, such staff of the Development
Bank having experience relating to export financing functions on such terms and conditions as may be
agreed upon between the Exim Bank and the Development Bank.
(3) The duties and conduct, terms and conditions of service and the establishment and maintenance of
a Provident Fund or any other Fund for the benefit of the officers and other employees of the Exim Bank
shall be such as may be prescribed.
28. Delegation of powers.—The Board may, be general or special order, delegate to any director or
any officer or other employee of the Exim Bank, subject to such conditions and limitations, if any, as may
be specified in the order, such of its powers and functions under this Act as it may deem necessary.
29. Returns.—The Exim Bank shall furnish, from time to time, to the Central Government such
returns as the Central Government may require.
30. Obligation as to fidelity and secrecy.—(1) The Exim Bank shall not, except as otherwise
required by this Act or any other law, divulge any information relating to, or to the affairs, of, its
constituents except in circumstances in which it is, in accordance with the law or practice and usage
customary among bankers, necessary or appropriate for the Exim Bank to divulge such information.
(2) The Exim Bank may, for the purpose of efficient discharge of its functions under this Act, collect
from, or furnish to, the Central Government, the Development Bank or any scheduled bank or such other
financial institution, as may be notified in the Official Gazette by the Central Government in this behalf,
credit information or other information as it may consider useful for the purpose, in such manner and at
such times, as it may think fit.
Explanation.—For the purpose of this sub-section, the expression “credit information” shall have the
same meaning as in clause (c) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934), subject
to the modification that “banking company” referred to therein shall mean the Development Bank, any
scheduled bank or other financial institution as aforesaid.
(3) Every director, member of a committee, auditor or officer or other employee of the Exim Bank or
of the Development Bank whose services are utilised by the Exim Bank under the provisions of this Act,
shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the
First Schedule.
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[(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit
Information Companies (Regulation) Act, 2005.]
31. Defects in appointments not to invalidate acts, etc.—(1) No act or proceeding of the Board or
of any committee of the Exim Bank shall be questioned on the ground merely of the existence of any
vacancy in, or defect in the constitution of, the Board or the committee, as the case may be.
(2) No act done by any person acting in good faith as a director shall be deemed to be invalid merely
on the ground that he was disqualified to be a director or that there was any other defect in his
appointment.
32. Arrangement with Exim Bank on appointment of directors to prevail.—(1) Where any
arrangement entered into by the Exim Bank with a company provides for the appointment by the Exim
Bank of one or more directors of such company, such provisions and any appointment of directors made
in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the
1. Ins. by Act 30 of 2005, s. 34 and the Schedule (w.e.f. 14-12-2006).
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Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum,
articles of association or any other instrument relating to the company, and any provision regarding share
qualification, age-limit, number of directorships, removal from office of directors and such like conditions
contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Exim
Bank in pursuance of the arrangement as aforesaid.
(2) Any director appointed as aforesaid shall—
(a) hold office during the pleasure of the Exim Bank and may be removed or substituted by any
person by order in writing of the Exim Bank;
(b) not incur any obligation or liability by reason only of his being a director or for anything done
or omitted to be done in good faith in the discharge of his duties as a director or anything in relation
thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the
number of directors liable to such retirement.
33. Indemnity of directors.—(1) Every director shall be indemnified by the Exim Bank against all
losses and expenses incurred by him, in, or in relation to, the discharge of his duties, except such as are
caused by his own wilful act or default.
(2) A director shall not be responsible for any other director or for any officer or other employees of
the Exim Bank or for any loss or expenses resulting to the Exim Bank from the insufficiency or
deficiency of the value of, or title to, any property or security acquired or taken on behalf of the Exim
Bank or the insolvency or wrongful act of any debtor or any person under obligation to the Exim Bank or
anything done in good faith in the execution of the duties of his office or in relation thereto.
34. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against the
Exim Bank or any director or any officer or other employee of the Exim Bank or any other person
authorised by the Exim Bank to discharge any functions under this Act for any loss or damage caused or
likely to be caused by anything which is in good faith done or intended to be done in pursuance of this
Act or any other law or provision having the force of law.
35. Act 18 of 1891 to apply in relation to Exim Bank.—The Bankers’ Books Evidence Act, 1891
shall apply in relation to the Exim Bank as if it were a Bank as defined in section 2 of that Act.
36. Section 34A and section 36AD only of Act 10 of 1949 to apply to Exim Bank.—Nothing
contained in the Banking Regulation Act, 1949, except section 34A and section 36AD thereof, shall apply
to the Exim Bank.
37. [Act 43 of 1961 and Act 7 of 1964 not to apply to Exim Bank.] Omitted by Finance Act, 1998
(21 of 1998) s. 117 (w.e.f. 1-4-1999).
38. Liquidation of Exim Bank.—No provision of any law relating to the winding up of companies
or corporations shall apply to the Exim Bank and the Exim Bank shall not be placed in liquidation save by
an order of the Central Government and in such manner as it may direct.
39. Power to make regulations.—(1) The Board may, with the previous approval of the Central
Government, make regulations not inconsistent with this Act to provide for all matters for which
provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may
provide for—
(a) the times and places of the meetings of the Board or of any committee constituted under this
Act and the procedure to be followed at such meetings including the quorum necessary for the
transaction of business;
(b) the fees and allowances that may be paid to the directors and the members of a committee;
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(c) the form and manner in which the balance-sheets and the account of the Export Development
Fund and the Exim Bank shall be prepared;
(d) the duties and conduct, and the terms and conditions of service of the officers and other
employees of the Exim Bank;
(e) the establishment and maintenance of provident fund or any other fund for the benefit of the
officers and other employees of the Exim Bank; and
(f) any other matter which is to be, or may be, prescribed.
(3) Every regulation made by the Board under this Act shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the regulation or both Houses agree that the regulation should not be made, the regulation
shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to the validity of anything previously
done under that regulation.
40. [Amendment of certain enactments.]—Rep. by Repealing and Amending Act, 1988 (19 of 1988),
s. 2, and the First Schedule (w.e.f. 31-3-1988).
41. Power to remove difficulty.—If any difficulty arises in giving effect to the provisions of this
Act, the Central Government may, by order, do anything, not inconsistent with such provisions, for the
purpose of removing the difficulty:
Provided that no such order shall be made after the expiration of three years from the date on which
this Act receives the assent of the President.