In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet approved the creation of the proposed 5-Nation BRICS bank – the New Development Bank (NDB) and and the BRICS Contingent Reserve Arrangement (CRA) to mobilize the resources for developmental projects and also to provide short-term liquidity to the emerging economies in case of any payment crisis.
Knowledge is Wealth
- BRICS – An association of five major emerging economies – Brazil, Russia, India, China and South Africa.
- The VII BRICS Summit will be held in Ufa, Russia.
- The New Development Bank or BRICS Development Bank is operated by the BRICS Countries as an alternative to the existing US-dominated World Bank and International Monetary Fund.
- The NDB will be headquartered in Shanghai, China and the First President will be from India.
- The Contingent Reserve Arrangement (CRA) is a provision to provide protection against global liquidity pressures.