New Development Bank (BRICS BANK): Important Points

• The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing US-dominated World Bank and International Monetary Fund.
• The New Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.
• On 15 July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the group of emerging economies signed the long-anticipated document to create the $100 billion.
• BRICS Development Bank and a reserve currency pool worth over another $100 billion
• Both will counter the influence of Western-based lending institutions and the dollar.
• Shanghai was selected as the headquarters after competition from New Delhi and Johannesburg.
• The first president will be from India.
• The bank's primary focus of lending will be infrastructure projects with authorized lending of up to $34 billion annually.
• Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion. Each member cannot increase its share of capital without all other 4 members agreeing.