Fortaleza: In a major victory for India, the BRICS Summit tonight decided to establish the new development bank with an initial authorized capital of USD 100 billion for which the initial subscribed capital will be equally shared by the founding members, a point New Delhi emphasized to prevent by domination by anyone of the members.
The agreement on establishing the bank and a contingency reserve arrangement with an initial size of 100 billion dollars came at a Summit meeting of the five-nation grouping in which Prime Minister Narendra Modi launched his first multilateral engagement with global leaders.
The bank will have an initial authorized capital of USD 100 billion. The initial subscribed capital shall be of USD 50 billion to be equally shared by the founding-members.
India will be the first President of the bank while the first chair of the Board of Governors will be from Russia.
China won the race for getting the bank's headquarters in Shanghai even as India also made a pitch for its location in New Delhi.