New Development Bank (NDB)

 Basic Overview

• Formerly Known As: BRICS Development Bank

• Type: Multilateral Development Bank

• Founded:

  • Proposed: 2012 (4th BRICS Summit, New Delhi, India)

  • Treaty Signed: July 2014 (6th BRICS Summit, Fortaleza, Brazil)

  • Operational: July 2015

• Headquarters: Shanghai, China

• President (as of 2025): Dilma Rousseff (Brazil)

• Official Language: English

• Website: ndb.int

Purpose & Objectives

• Main Aim: Finance infrastructure and sustainable development projects in BRICS and other developing countries.

• Key Functions:

  • Provide loans, guarantees, equity participation, and technical assistance.

  • Foster cooperation with national and multilateral financial institutions.

• Mandate: Align financing with national development plans of member countries.

Capital Structure

• Authorized Capital: $100 billion

• Subscribed Capital: $50 billion (initial), equally divided among founding BRICS members

  • Paid-in Capital: $10 billion

  • Callable Capital: $40 billion

• Capital Increase: Possible only with unanimous approval of founding members.

Voting Power

• One country, one vote (No veto power).

• BRICS countries must retain at least 55% of total voting power, even as new members join.

Governance Structure

1. Board of Governors – Top decision-making body.

2. Board of Directors – Supervises daily operations.

3. President & 4 Vice Presidents – One from each founding member (except country of the President).

• President Tenure (Rotational):

  • 1st President: K.V. Kamath (India)

  • 2nd President: Marcos Prado Troyjo (Brazil)

  • Current President: Dilma Rousseff (Brazil, 2023–)

Membership

• Current Members (2025):

  • Founding: Brazil, Russia, India, China, South Africa

  • New Members: Bangladesh, UAE, Egypt, Algeria, Uruguay, Colombia, Uzbekistan

• Membership Open To: All UN members, subject to approval.

• Note: BRICS must retain majority capital and voting rights.

NDB Regional Offices

• Africa Regional Center: Johannesburg, South Africa (2016)

• Americas Regional Office: São Paulo, Brazil

• India Regional Office: Gujarat (Ahmedabad) – expanded to oversee projects in India & Bangladesh

• Russia Office: Moscow

Key Developments

• 2016: Issued first green bond (RMB 3 billion, China bond market)

• 2016: Approved first set of infrastructure projects in all founding countries

• 2018: Received AA+ credit ratings from S&P and Fitch

• 2020 (COVID Response): Set up a $10 billion Emergency Assistance Facility (initial $5 billion disbursed)

• 2022: Suspended new transactions with Russia after Ukraine crisis (due to sound banking principles)

Shareholding Structure (2025 Snapshot)

Note: Share data for Colombia, Uruguay, and Uzbekistan not yet published.

Strategic Goals (As per 2017–2021 Strategy)

• Finance transformational infrastructure

• Balance portfolio across sectors and geography

• Partner with national and multilateral banks

• Focus on sustainable, climate-resilient growth

Relevance for UPSC

GS 2 – International Institutions:

• Role of alternative global financial governance

• India’s leadership in multilateral institutions

GS 3 – Economy:

• Financing infrastructure, sustainable development, South-South cooperation