BRICS Banks Current Affairs - 2020

India attends New Development Bank Governors meet

On May 27, 2020, Finance Minister Nirmala Sitaraman attended the Special Board of Governors meet of New Development bank through video conference.

Highlights

The leaders that attended the meet elected the president, vice president of new development bank. The bank has so far approved 16.6 billion USD to over 55 projects in its member countries.

Mr Marcos Troyjo of Brazil was elected as the president at the meet.

New Development Bank

New Development Bank was founded in 2014. The headquarters of the bank is located in Shanghai, China. It aims to foster development of its member countries, support economic growth, promote competitiveness and build knowledge sharing platform. The bank was formed by the BRICS nations.

5th Annual Meet and COVID-19

The 5th annual meet of board of governors of the New Development Bank was held in April 2020. During the meet, the bank allocated 5 billion USD to BRICS countries and 1 billion USD of emergency funds to India.

Cabinet approves MoU between EXIM Bank and BRICS banks for blockchain research

Union Cabinet has approved MoU signed between Export-Import Bank of India (Exim Bank) and member banks under BRICS Interbank Cooperation Mechanism on Collaborative Research on Distributed Ledger and Block chain Technology in context of development of digital economy.

Key Facts

Blockchain technology or Distributed Ledger holds potential for solutions to various challenges being faced in financial sector space of BRICS nations. The MoU was signed between Exim Bank, Banco Nacional de DesenvolvimentoEconomico e Social (BNDES, of Brazil), China Development Bank (CDB), State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank of Russia) and Development Bank of Southern Africa (DBSA). It intends to enhance understanding in this field, through joint research efforts to identify areas within respective business operations where it may have potential for applications aimed at enhancing operational efficiencies.

Background

The Xiamen Declaration signed in September 2017 at 9th BRICS summit in Xiamen, China by BRICS leaders had highlighted importance of digital economy and ways BRICS nations can leverage its potential for fostering global economic development and benefit everyone. Accordingly, Memorandum of Understanding (MoU) on Collaborative Research on Distributed Ledger and Block chain Technology in the Context of Development of Digital Economy was suggested to be signed by all member banks.