Beijing: India has said it has begun the internal process to set up the USD-100 billion New Development Bank (NDB) aimed at funding projects in developing nation, and hoped other BRICS members would also finalise the instruments of ratification at the earliest.
"India has initiated the internal process of ratification of the (Inter-Governmental) Treaty and we are hopeful that other members would also finalise their instruments of ratification soon," said Indian Ambassador to China Ashok K Kantha.
Kantha said the member countries -- Brazil, Russia, India, China and South Africa -- are "working to expedite the ratification procedures to make the NDB a reality within the shortest possible time."
He was speaking at the Third Economic and Financial Forum of BRICS Countries, organised by China Economic Daily here.
"The most important outcome of our deliberations so far has been the New Development Bank," said Kantha.
"It is heartening that this project has moved so rapidly as a result of our joint efforts, and the Inter-Governmental Agreement to establish the NDB was signed at the Fortaleza Summit. India is privileged to appoint the first President of the bank, which will be headquartered at Shanghai," he said.
Kantha said the Fortaleza Summit resulted in another important Inter-Governmental Treaty on the establishment of Contingent Reserve Arrangement (CRA) that will give the member countries a cushion against sudden external pressures on their currencies and help address volatility in financial flows.
The NDB will be set up with a starting capital of USD 50 billion with a provision to increase it to USD 100 billion. CRA will have USD 100-billion fund.
The bank, aimed at funding infrastructure projects in developing nations, will be headquartered in Shanghai, and India will preside over its operations for the first six years, followed by five-year terms for Brazil and then Russia.
It was one of the major achievements of the BRICS bloc since they got together in 2009 to press for a bigger say in the West-dominated global financial order.