In March 2012 BRICS Leaders directed their Finance Ministers to consider the possibility of setting up a new Development Bank for mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries to supplement the existing efforts of multilateral and regional financial institutions for global growth and development. In March 2013, BRICS Leaders expressed their satisfaction regarding establishment of a New Development Bank being feasible and viable. They further agreed to establish the New Development Bank with initial capital contribution being substantial and sufficient for the bank to be effective in financing infrastructure. The objective for establishing such bank is for mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, and to supplement the existing efforts of multilateral and regional financial institutions for global growth and development.

The proposed Bank is a multilateral arrangement which will be set up on the basis of an international agreement. Any action on this will be subject to negotiations to be conducted among BRICS member countries at the negotiation meetings. The conduct, time frame and final outcome of these negotiations are not a matter within the exclusive jurisdiction of the Government of India.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

New Development Bank mobilizes resources for infrastructure and sustainable development, subject to multilateral negotiation among member states. Establishment of a New Development Bank is proposed to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, with substantial initial capital contributions. The Bank will be constituted as a multilateral arrangement under an international agreement, and its conduct, time frame and final outcomes will be determined through negotiations among member states rather than by any single national government.