What is the primary purpose of the NDB (New Development Bank), established by the BRICS (Brazil, Russia, India, China, and South Africa) countries?
Show answer & explanation
Correct answer: D
Explanation
Answer: Financing infrastructure and sustainable development projects
Explanation –
The New Development Bank (NDB), formerly known as the 'BRICS Bank', was established in 2014 during the 6th BRICS Summit (Fortaleza, Brazil). Its primary objective is to mobilize resources and provide loans for infrastructure and sustainable development projects within the BRICS nations (Brazil, Russia, India, China, and South Africa) as well as other emerging economies. This bank has emerged as an alternative to Western-dominated institutions such as the World Bank and the International Monetary Fund (IMF). Its headquarters is located in Shanghai, China.
Additional Points –
Year of Establishment: 2014 (Operations commenced in 2015).
First President: K.V. Kamath from India served as its first president.
New Members: In recent years, Egypt, the United Arab Emirates (UAE), Uruguay, and Bangladesh have also been admitted as members.
Contingent Reserve Arrangement (CRA): The BRICS nations have also established the CRA to address liquidity crises.
Potential Exam Questions and Answers –
Question: Where is the headquarters of the New Development Bank (NDB) located?
Answer: Shanghai, China.
Question: Who was the first president of the NDB?
Answer: K.V. Kamath.