Points to remember about New Development Bank (BRICKS)

Important Points to know about BRICS Bank or New Development Bank:
Important points that we have to know about the BRICS Bank of New Development Bank were given here, which will be more helpful for the candidates those who are preparing for the upcoming exams.

NEW DEVELOPMENT BANK

1). New Development Bank or the BRICS Development Bank is a multilateral development bank operated by the BRICS states.

2). An alternative to the existing
·         World Bank
·         International Monetary Fund

3). Aims to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.

4). Headquarters in Shanghai, China.

5). Participant countries:
·         Brazil
·         Russia
·         India
·         China
·         South Africa

6). None of the above country has veto power.

7). Each country holds equal number of shares and equal voting rights.

8). Idea for setting up NDB – 4th BRICS summit 2012, Delhi.

9). Leaders agreed to set up NDB – 5th BRICS summit 2013, Durban, South Africa.

10). BRICS states signed the Agreement of Articles for NDB – 6th BRICS summit 2014, Brazil.

11). Initial capital for NDB – 100 billion, of which 12.5% to be paid by each member in 1st 7 years.

12). Separate agreement for 100 billion reserve currency pool was also signed.

13). 1st President of NDB from India – K. V. Kamath – former non-executive chairman of ICICI bank.

14). Main organs of Articles of Agreement:
·         Board of ministers or governors
·         Board of Directors
·         President, Vice President

15). NDB will allow new member to join but the BRICS capital share cannot fall below 55%.

16). For all the BRICS states
·         Number of shares – 100,00
·         Shareholding capacity – 20%
·         Voting right  – 20%
·         Authorized capital – 10 billion USD