New Development Bank (NDB) by BRICS Nations – Quiz & Facts New Development Bank (NDB) by BRICS Nations – Quiz & Facts
New Development Bank (NDB) by BRICS Nations  History: The idea for setting up the bank was proposed byIndia at the 4th BRICS summit in 2012 held in... New Development Bank (NDB) by BRICS Nations – Quiz & Facts

New Development Bank (NDB) by BRICS Nations 

History:

  • The idea for setting up the bank was proposed byIndia at the 4th BRICS summit in 2012 held in Delhi.
  • BRICS leaders agreed to set up a Development bank at the5th BRICS summit held in Durban, South Africa on 27 March 2013.
  • On 15 July 2014, the first day of the6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank.
  • At the7th BRICS summit in July 2015 The agreement entered into force with the ratification of all 5 states that had signed the Agreement on the New Development Bank.

 

Members & Capital Base of New Development Bank:

  • Founding Members: BRICS Nations viz. – Brazil, Russia, India, China & South Africa.
  • The bank will have starting capital of $50 billion, with capital increased to $100 billion over time.
  • Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion.
  • Each participant country holds an equal number of sharesand equal voting rights, and none of the countries will have veto power.
  • The bank will allow new members to join but the BRICS capital share cannot fall below 55%.
  • The NDB is also backed by the China-floated USD 50 billion Asia Infrastructure Investment Bank (AIIB) in which India and 56 other countries have joined.

Headquarters of New Development Bank:

  • The bank is headquartered in Shanghai, China.
  • South Africa will be the African Headquarters of the Bank named the New Development Bank Africa Regional Centre.

 

Management Structure:

  • Main organs of New Development Bank:

(a) Board of Governors   (b) Board of Directors (c) President & Vice President

  • The inaugural chairman of the Board of Governors will be Russian
  • The inaugural Chairman of the Board of directors will come from Brazil
  • The first president will be from India – K V Kamath ex-ICICI Bank chairman has been appointed as first President of New Development Bank

 

Objectives:

  • Primary goal of New Development Bank is to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
  • Will serve as an alternative to the existingAmerican and European-dominated World Bank and International Monetary Fund.
  • Strengthen Economic cooperation among BRICS member nations

Quiz on New Development Bank

(Q.1) Where is the Headquarter of New Development Bank?

  1. Moscow, Russia
  2. New Delhi, India
  3. Shanghai, China
  4. Durban, South Africa

(Q.2) Who has been appointed as the first President of New Development Bank?

  1. K V Kamath
  2. Shikha Sharma
  3. Amartya Sen
  4. Deepak Parekh

 

(Q.3) The New Development Bank has starting capital of _______ and it will be increased to ______ over time

  1. $ 50 billion & $ 150 billion
  2. $25 billion & $ 100 billion
  3. $ 50 billion & $ 100 billion
  4. $ 25 billion & $ 150 billion

 

(Q.4) The agreement to establish New Development Bank was ratified at which BRICS Summit?

  1. 4th BRICS Summit, 2012
  2. 5th BRICS Summit 2013
  3. 6th BRICS Summit 2014
  4. 7th BRICS Summit 2015

(Q.5) Which among the following statement/s about New Development Bank is/are correct?

  1. The inaugural Chairman of Board of Directors of New Development Bank will come from Brazil
  2. The inaugural Chairman of Board of Governors will come from Russia
  3. Both (a) & (b)
  4. Neither (a) nor (b)

We hope you found this article useful

Thank You

Team Entrancegeek