BharatNotes What is New Development Bank?
The New Development Bank (NDB), formerly referred to as the "BRICS Development Bank", is a multilateral development bank set up by Brazil, Russia, India, China and South Africa. The Agreement on the NDB was signed on 15 July 2014 at the 6th BRICS Summit in Fortaleza, Brazil, and the bank's founding members joined on 3 July 2015. Its purpose is to mobilise resources for infrastructure and sustainable-development projects in BRICS and other emerging and developing economies, complementing the efforts of existing international and regional financial institutions.
The NDB is headquartered in Shanghai, China. It operates an Africa Regional Centre in Johannesburg (opened 2017), an Americas Regional Office in Sao Paulo, and an India Regional Office in GIFT City, Gujarat (established 2022).
Key Features
- Capital: Initial authorised capital of US$100 billion, with an initial subscribed capital of US$50 billion shared equally among the five founding BRICS members.
- Governance: Each founding member holds one equal vote, and no member has veto power. The Articles of Agreement stipulate that the combined voting share of the founding BRICS members can never fall below 55%.
- Leadership: K.V. Kamath of India was the first President (from 2015). He was succeeded by Marcos Troyjo of Brazil (from 7 July 2020), and then by Dilma Rousseff of Brazil (since March 2023). Rousseff was reappointed for a second term in March 2025, extending her leadership through 6 July 2030.
- Local-currency focus: Under its General Strategy for 2022-2026, the NDB set a target to extend 30% of its total financing in the local currencies of member nations, reducing reliance on the US dollar.
Membership Status (as of 2025)
| Category | Countries |
|---|---|
| Founding members (3 July 2015) | Brazil, Russia, India, China, South Africa |
| Admitted later | Bangladesh (Sep 2021), UAE (Oct 2021), Egypt (Feb 2023), Algeria (May 2025) |
| Approved, accession pending | Uruguay, Uzbekistan, Colombia, Ethiopia |
This brings the total to 9 full members (as of the NDB official members list, 2025), with four further countries admitted by the Board of Governors but yet to deposit their instruments of accession.
Significance for India
India was a key architect of the NDB and hosted its second Annual Meeting in New Delhi (2017). The bank gives India access to project finance on more equitable governance terms than legacy Bretton Woods institutions, and the GIFT City regional office anchors the bank's South Asia operations. The NDB embodies the broader push for a multipolar financial order and reform of the global financial architecture.
UPSC Angle
The NDB is best contrasted with the AIIB (headquartered in Beijing, China-led) and the BRICS Contingent Reserve Arrangement (a US$100 billion currency-swap pool, not a lending bank). Examiners test the founding location (Fortaleza), headquarters (Shanghai), the equal-subscription model, and India's role. In Mains, it anchors answers on de-dollarisation, South-South cooperation and reform of multilateral finance.
