Export–Import Bank of India was established in 1982 under the Export-Import Bank of India Act 1981.
Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment.
Over the period, it has evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their globalization efforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.
Crowdfunding is asking a crowd of people to donate a defined amount of money for a specific cause or project in exchange for various rewards.
It is the practice of pooling in of resources by numerous people, thus the term ‘crowd’, to fund prospective projects.
It is an alternative finance system where funds are raised through mediums like internet-mediated registries, mail-order subscriptions, benefit events, and the like.
Crowdfunding is usually done via online platforms.
The fundraisers set up their public campaign highlighting the main features of their proposed project and accepting donations for the same.
These funding applications can be of any nature. They can range from charitable to educational projects to personal ventures or creative ones.
There are three general categories crowdfunding can fall under: Equity, Donation, and Debt.
Equity-based crowdfunding is asking a crowd to donate to your business or project in exchange for equity.
Donation-based crowdfunding is asking a crowd to donate to your project in exchange for tangible, non-monetary rewards such as an ecard, t-shirt, pre-released CD, or the finished product.
Debt-based crowdfunding is asking a crowd to donate to your business or business project in exchange for financial return and/or interest at a future date.
Crowdfunding in India:
Crowdfunding is nothing new to India.
Since centuries we have been donating ‘chanda’ for some or the other socio-cultural cause, such as building of religious infrastructure.
The online scene is a bit of a different matter though.
So the crowdfunding scene in India is rather new with not much awareness amongst people.
Crowdfunding, presently in a pubescent stage, has to face a lot of problems in India.
Firstly, there is no proper legal regulation setting up rules regarding and specifying the same.
But late last year, the Securities and Exchange Board of India (SEBI) released a paper acknowledging the need for the regulation.
It defined crowdfunding as “solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause.”
Secondly, people in India are still adjusting to a digital lifestyle where most transactions take place online.
Moreover, the industry is still unable to connect to people, though, efforts have been made in this direction.