New Development Bank

Context: India has recently contributed $2 billion to the New Development Bank, formerly known as BRICS New Development Bank.

Relevance of the Topic Prelims: New Development Bank

About New Development Bank:

The New Development Bank (NDB) is a multilateral development bank established by Brazil, Russia, India, China, and South Africa (BRICS).
- The idea for setting up the bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi.
- In 2014, the first day of the 6^th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank.
Objective: To mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
Initial authorised capital: $100 billion.
Headquarters: Shanghai, China.

India’s contribution to the New Development Bank (NDB) stands at $2 billion from the fiscal year 2015-16 to 2021-22.
As of now, 20 externally aided projects (in areas transportation, water conservation, food management, and connectivity in rural areas) with loan amounts of $4,867 million funded by the NDB are ongoing in India.

Practice Question:
Which of the following statements about the New Development Bank (NDB) is/are correct?

1. The New Development Bank was established by the BRICS countries to mobilise resources for infrastructure and sustainable development projects.

2. The headquarters of the New Development Bank is located in Beijing, China.

Select the correct answer using the codes given below:
(a) 1 only.

(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (b)