New Delhi: Union cabinet under Prime Minister Narendra Modi on Wednesday cleared the creation of the proposed 5-nation BRICS bank that will mobilise resources for infrastructure projects and provide short-term liquidity to emerging economies in case of payment crisis. It approved establishing the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA).
The NDB will mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development. The establishment of the Bank will help India and other signatory countries to raise and avail resources for projects.
