The Exim Bank of India is going to begin operations in Bangladesh from next month to facilitate smooth implementation of projects under India's line of credit.

Indian Finance Minister Arun Jaitley will inaugurate a representative office of the bank at a function at Sonargaon hotel on October 4, according to the Indian high commission.

The bank last year proposed opening the Dhaka office.

Indian Prime Minister Narendra Modi committed to give fresh $4.5 billion line of credit to Bangladesh during Prime Minister Sheikh Hasina's visit to India in April, to take the neighbouring country's total commitment since 2010 to $7.5 billion.

As many as 17 projects have been identified for funding with the new line of credit, all of which got the green light from the Indian Exim Bank. At present, the bank's approval is required for project selection and associated procurement proposals.

Apart from project implementation, the office's presence will help trade and investment-related activities, said an Economic Relations Division (ERD) official.

On the office inauguration day, an agreement on a fresh $4.5 billion credit may be signed by the bank and ERD in presence of finance ministers of both countries.  Jaitley is due to arrive on October 3, accompanied by a 20-member Indian business delegation which will meet Bangladeshi businessmen that day.

The next day, the Indian high commission, in association with the Policy Research Institute of Bangladesh, will organise a seminar on "Macroeconomic initiatives of the government of India" and Jaitley will launch a "cashless visa service" for the high commission.