- The NDB created by the BRICS countries formally came into existence at the Ufa Summit (Russia) in 2015.
- It was established with the objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the efforts of multilateral and regional financial institutions toward global growth and development.
- In 2018, the NDB received observer status in the UN General Assembly.
- Voting power of each member is equal to the number of its subscribed shares in capital stock.
- All members of the United Nations could be members of the bank, however the share of the BRICS nations can never be less than 55% of voting power.
Why in News?
- Finance and Corporate Affairs Minister Nirmala Sitharaman has urged the New Development Bank to consider working closely with India’s new Development Financial Institution (Refer Pulse 42 edition) for funding infrastructure.
- The NDB has so far approved 18 projects in India, including emergency loans of $2 billion to support health spending and economic recovery in the aftermath of the COVID-19 pandemic.