New Development Bank (NDB)

New Development Bank (NDB)

Why it Matters? 

  • India reaffirmed its leadership in the Global South at the 10th NDB meeting in Brazil, highlighting its resilient economy and commitment to inclusive, sustainable, and innovation-driven development. 

What You Should Know? 

  • The New Development Bank (NDB) was established in 2015 by the BRICS countries: Brazil, Russia, India, China, and South Africa. 

  • It has its headquarters in Shanghai, China. 

  • The purpose of the NDB is to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs). 

  • Its current members include Brazil, Russia, India, China, South Africa, Bangladesh, the United Arab Emirates (UAE), Egypt, and Algeria. 

  • As per Article 2 of the NDB agreement, membership is open to all members of the United Nations, including both borrowing and non-borrowing members. 

  • Uruguay is a prospective member, having been admitted by the NDB’s Board of Governors, and will officially become a member upon depositing its instrument of accession. 

  • The initial authorised capital of the bank is $100 billion, out of which the five founding BRICS members equally share $50 billion. 

  • Each founding member holds an equal share of $10 billion in the bank’s capital structure.