Previous Year Question
Which bank has been established in China by BRICS countries?
New Industrial Development Bank
New Agricultural Development Bank
New Development Bank
New Commercial Bank
Correct Answer: C
Detailed Solution
The New Development Bank was established by the then five BRICS countries—Brazil, Russia, India, China and South Africa.
The agreement establishing the NDB was signed on 15 July 2014 during the 6th BRICS Summit held at Fortaleza, Brazil.
Under the agreement, the headquarters of the Bank was established in Shanghai, China. The Agreement entered into force on 3 July 2015, and the Bank formally commenced operations that year.
The principal purpose of the NDB is to provide financial resources for infrastructure and sustainable development projects. It finances development projects in BRICS and other emerging market and developing economies.
Indian banker K. V. Kamath was appointed as its first President.
Current Status
The NDB is no longer limited to the five founding BRICS countries. As of September 2026, it has 10 full members.
In addition to the founding members, Bangladesh, the United Arab Emirates, Egypt, Algeria and Uzbekistan have become full members.
The Bank continues to be headquartered in Shanghai, China, and its core mandate remains financing infrastructure and sustainable development.