The first meeting of the Governing Council of the BRICS Contingent Reserve Arrangement was held on September 4, 2015 at Ankara, Turkey. India is represented by Hon’ble Minister of Finance Shri Arun Jaitley as the Governor and Dr. Raghuram G. Rajan, Governor, RBI as the Alternate Governor in the Governing Council. During the meeting, Governing Council approved the Governing Council Procedural Rules and Standing Committee Procedural Rules. The decisions at the above meeting were taken by consensus.

 With the approval of the Procedural Rules, most of the foundation work relating to setting up the Contingent Reserve Arrangement is over. The establishment of the Contingent Reserve Arrangement will help India and other signatory countries to forestall short-term liquidity pressures in case of exigencies, provide mutual support and further strengthen financial stability. It will also ensure equity and inclusiveness by providing a backup safety net arrangement in place that will allow Government of India to go ahead with necessary policy decisions without being much worried about international economic developments.

 This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.

Contingent Reserve Arrangement establishment provides short term liquidity support and a safety net preserving policy autonomy. The Governing Council approved the Contingent Reserve Arrangement's Governing Council Procedural Rules and Standing Committee Procedural Rules at its first meeting, with India represented by its Finance Minister and RBI Governor as alternate. Decisions were taken by consensus. The Arrangement is intended to provide short term liquidity support and mutual financial assistance to strengthen financial stability, ensure equity and inclusiveness among signatories, and offer a backup safety net that reduces external constraints on domestic policy decisions.