SSC
The New Development Bank (NDB), set up by the BRICS countries, was established by an agreement signed in:
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Answer: Option C — 2014
Detailed Solution
The agreement to establish the New Development Bank (NDB) was signed on 15 July 2014 at the 6th BRICS Summit in Fortaleza, Brazil.
About the New Development Bank:
- It was founded by the five BRICS countries: Brazil, Russia, India, China and South Africa.
- The idea was first proposed by India at the 4th BRICS Summit in New Delhi in 2012.
- The agreement entered into force in July 2015, and the bank began operations that year.
- Its headquarters is in Shanghai, China.
- It has regional offices in Johannesburg (South Africa), Sao Paulo (Brazil), Moscow (Russia) and GIFT City, Gandhinagar (India).
- Each of the five founding members has an equal share and equal voting rights; no member has a veto.
- Its authorised capital is 100 billion US dollars, with initial subscribed capital of 50 billion dollars.
- Its aim is to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
Its leadership:
The presidency rotates among the founding members.
Its first President was K. V. Kamath of India (2015-2020).
Marcos Troyjo of Brazil was the second (2020-2023), followed by Dilma Rousseff, former President of Brazil (from 2023).
New members:
Bangladesh, the UAE, Egypt and Algeria have joined as members, and Uruguay has been admitted as a prospective member.
NDB in India:
It has funded many Indian projects, such as metro rail, renewable energy, rural roads, water supply and sanitation.
Contingent Reserve Arrangement (CRA):
At the same 2014 summit, the BRICS countries also set up a "Contingent Reserve Arrangement" of 100 billion US dollars, to help members facing short-term balance-of-payments problems.
About BRICS:
The term "BRIC" was coined by the Goldman Sachs economist Jim O'Neill in 2001.
The first BRIC summit was held in Yekaterinburg, Russia, in 2009. South Africa joined in 2010, making it BRICS.
BRICS expanded from 2024 to include Egypt, Ethiopia, Iran and the UAE, and Indonesia joined in 2025.
India chairs BRICS in 2026.
Why not the other options?
- ✗2009 is the year of the first BRIC summit.
- ✗2016 is the year the Asian Infrastructure Investment Bank began operations.
- ✗2019 is not linked to the founding of the NDB.
Quick tip
Remember: New Development Bank = agreement 15 July 2014 at Fortaleza (BRICS; operational 2015; HQ Shanghai; equal shares; first President K. V. Kamath); CRA = 100 billion dollars; BRIC term = Jim O'Neill (2001).
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International Economic Organisations — Preparation
This question tests your understanding of International Economic Organisations, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers international economic and financial organisations: the IMF, the World Bank group, the WTO, the Asian Development Bank, the New Development Bank, the AIIB, OPEC, the OECD and groupings such as the G20, along with their headquarters, founding and functions. Questions usually ask where an organisation is headquartered, when it was set up, and what it does. For example, the IMF and World Bank were created at the Bretton Woods Conference in 1944, the WTO replaced GATT in 1995, and the New Development Bank, set up by the BRICS countries, is headquartered in Shanghai. Practise the international economic organisations questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.