In a move that will help India in raising more resources for infrastructure development, the Cabinet...
In a move that will help India in raising more resources for infrastructure development, the Cabinet on Wednesday granted its approval for the establishment of the New Development Bank (NDB).
The Cabinet also gave its nod for the BRICS Contingent Reserve Arrangement (CRA).
The NDB will mobilise resources for infrastructure and sustainable development projects in BRICS (Brazil, Russia, India, China and South Africa) and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development, an official statement said.
The BRICS CRA proposes to provide short-term liquidity support to the members through currency swaps to help mitigating balance of payment (BoP) crisis situation, in case such a situation arises. The BRICS CRA will help India and other signatory countries to forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It would also contribute to strengthening the global financial safety net and complement existing international arrangements (from IMF) as an additional line of defence.
The Sixth BRICS Summit held in Fortaleza, Brazil, in their declaration in July last year had announced the signing of the agreement to establish the NDB.
The declaration had said the bank will have an initial authorised capital of $100 billion. The initial subscribed capital will be of $50 billion, equally shared among founding members, it said, adding that the first President of the bank is to be from India, while the headquarters will be located in Shanghai. India is yet to begin the process of selection of the bank’s president.
The first chair of the board of governors will be from Russia, while the first chair of the board of directors is to be from Brazil. The NDB Africa Regional Centre is to be established in South Africa cwith the headquarters.
… approves setting up two AAR benches
The Cabinet on Wednesday approved setting up two additional benches of the Authority for Advance Rulings (income tax) in New Delhi and Mumbai. The new benches would dispose of increased number of cases and help in reducing pendency of cases for the benefit of both the tax payer and the government, said an official release.