Govt. of India to Establish New Development Bank for funding Infra Projects in BRICS Countries

26 Feb, New Delhi

Union Cabinet has cleared the establishment of the New Development Bank for funding infrastructure and development projects in the BRICS countries.

It also cleared the BRICS Contingent Reserve Arrangement (CRA) which is meant to provide short-term liquidity support to the members in case of a Balance of Payments Crisis.

An official release said, the New Development Bank will mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development.

The release said, the BRICS Contingent Reserve Arrangement will help India and other signatory countries to forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It will also contribute to strengthening the global financial safety net and complement existing international arrangements from IMF as an additional line of defence.