Prelims Syllabus : International Organisations – New Development Bank Mains Syllabus : GS-II Important International institutions, agencies and fora- their Structure, Mandate.
Why in News?
- Indian Union Minister of Finance has attended the 5th Annual Meeting of the Board of Governors of New Development Bank (NDB) through video-conference in New Delhi.
Highlights of the Meeting:
- NDB fast-tracked financial assistance of about $5 billion to BRICS countries including Emergency Assistance of $1 billion to India to combat Covid-19 pandemic. This assistance under this facility was suggested to be enhanced to $10 billion.
- NDB was encouraged to take appropriate actions to join the G-20 forum along with other Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) like the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), etc.
- India appreciated NDB’s efforts in establishing itself as a credible Global Financial Institution, delivering its mandate successfully by taking a more sustainable and inclusive approach.
- Brazil thanked India for sending critical drugs for timely management of novel coronavirus in Brazil.
NDB appreciates India:
- NDB has praised India on the measures taken to respond to the health crisis and to mitigate its impact. Some of the key measures taken by India are as:
- Pradhan Mantri Garib Kalyan Yojana: Announcement of a scheme of social support measures amounting to ₹70 lakh crore to alleviate the hardship of the poor and the vulnerable.
- Insurance cover for Health Workers: Insurance cover of ₹50 lakh per person to over 2.2 million frontline health workers and others provision of relief to firms in statutory and Regulatory Compliance Matters.
- Easing of monetary policy by the Reserve Bank of India (RBI) and three-month moratorium on loan instalments.
- India Covid-19 Emergency Response and Health System Preparedness Package: Allocation of $2 Billion (₹15,000 crore) by the Government of India for strengthening the healthcare system.
- Creation of a Covid-19 Emergency Fund for SAARC countries.
- Helping Neighbouring Countries: India’s efforts in supplying critical medicine to the countries in need (e.g. Operation Sanjeevani), to tackle the Covid-19.
About New Development Bank:
- It is a multilateral development bank jointly founded by the BRICS countries (Brazil, Russia, India, China and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014.
- It is headquartered at Shanghai, China.
- In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
- It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge Technology.