The New Development Bank will be set up by the BRICS grouping after all the 5 signatory nations give approval to the agreement in accordance with their laws, Parliament was informed today.
"The Bank will be established after each signatory country has deposited with the government of Republic of Brazil an instrument setting forth that it has accepted, ratified or approved this Agreement in accordance with its own laws," Minister of State for Finance Nirmala Sitharaman said in a written reply in the Lok Sabha.
The BRICS nations include Brazil, Russia, India, China and South Africa.
The setting up of the BRICS bank was decided in a summit on July 15 in Fortaleza, Brazil, Sitharaman said.
She said the bank will be an additional source of long term finance for infrastructure projects in India.
In addition, such a bank will also be instrumental for increasing economic cooperation among BRICS countries, which will ensure more productive use of resources among the 5 nations, she added.
The BRICS nations have already singed the agreement to set up the Bank on July 15.
The bank aims to support infrastructure and sustainable development projects - public or private - in BRICS and other emerging market economies and developing countries through loans, guarantees, equity participation and other financial instruments.
It will also cooperate with international organisations, as well as national entities, public or private, in particular with international institutions and national development banks.
Besides, it will provide technical assistance for the preparation and implementation of the projects to be supported by the Bank.
