New Development Bank (NDB) – Complete Notes for Competitive Exams
By Home Academy
📌 Introduction
The New Development Bank (NDB) is a multilateral development bank established by BRICS nations to finance infrastructure and sustainable development projects in emerging economies.
📅 Formation & Background
| Year | Event |
|---|---|
| 2014 | Agreement signed at BRICS Summit (Fortaleza, Brazil) |
| 2015 | NDB officially established |
| 2016 | First loan approved |
👉 It was created as an alternative to Western-dominated institutions like IMF and World Bank.
🌍 Headquarters & Offices
| Location | Details |
|---|---|
| Shanghai | Headquarters |
| Johannesburg | Africa Regional Centre |
| São Paulo | Americas Regional Office |
| Moscow | Eurasian Centre |
| India (GIFT City) | Regional Office |
👥 Members of NDB
| Category | Countries |
|---|---|
| Founding Members | Brazil, Russia, India, China, South Africa |
| New Members | Bangladesh, United Arab Emirates, Egypt |
🎯 Objectives
| Objective | Explanation |
|---|---|
| Infrastructure Development | Roads, railways, energy projects |
| Sustainable Development | Green energy, climate projects |
| Financial Cooperation | Strengthen economic ties among members |
| Alternative Financing | Reduce dependence on IMF & World Bank |
💰 Capital Structure
| Component | Details |
|---|---|
| Authorized Capital | $100 billion |
| Initial Subscribed Capital | $50 billion |
| Equal Shareholding | Each BRICS country has equal voting power |
🏦 Key Features
| Feature | Explanation |
|---|---|
| Equal Voting Rights | Unlike IMF, no single country dominates |
| Local Currency Lending | Loans in domestic currencies |
| Focus on Emerging Economies | Special support to developing nations |
| Fast Loan Approval | Less bureaucratic delay |
📊 Important Projects
| Sector | Examples |
|---|---|
| Energy | Renewable energy projects in India & China |
| Transport | Roads & metro projects |
| Water | Sanitation & irrigation systems |
🧠 MCQs for Practice
Q1. NDB was established in which year?
A. 2010
B. 2012
C. 2014
D. 2015 ✅
Q2. Headquarters of NDB is located in?
A. India
B. USA
C. China ✅
D. Brazil
Q3. Which of the following is NOT a founding member of NDB?
A. India
B. Brazil
C. Bangladesh ✅
D. China
Q4. Total authorized capital of NDB is?
A. $50 billion
B. $100 billion ✅
C. $200 billion
D. $500 billion
📚 PYQ-Type Questions
Q1. Which organization provides infrastructure funding for BRICS countries?
A. IMF
B. World Bank
C. New Development Bank ✅
D. WTO
Q2. NDB is associated with which group?
A. G7
B. ASEAN
C. BRICS ✅
D. SAARC
📊 Statement-Based Questions
Q1. Consider the following statements:
NDB was established by BRICS countries
It provides loans only in US dollars
Its headquarters is in Shanghai
Correct Answer:
B. 1 and 3 only ✅
👉 Explanation:
Statement 2 is incorrect (loans also in local currencies)
Q2. Consider the following:
NDB promotes sustainable development
Voting power is equal among BRICS members
It is controlled by IMF
Correct Answer:
C. 1 and 2 only ✅
⚠️ Important Exam Points
NDB = BRICS Bank
Headquarters → ShanghaiEqual voting rights (very important)
Focus on infrastructure & sustainability
New members expanding influence
📢 Disclaimer
These notes are prepared by Er. Afzal Malik (Founder, Home Academy) for competitive exam aspirants. We try our best to provide error-free content, but we are not responsible for any unintended errors.