- Eminent banker K V Kamath was today appointed as head of the USD 50 billion New Development Bank being set up by the five emerging economies of BRICS grouping.
- Kamath will have a five year term of the bank, which is likely to be operationalised within one year.
- Leaders of the emerging economies of Brazil, Russia, India, China and South Africa (BRICS) had last year reached an agreement to establish the New Development Bank, with its headquarters in Shanghai. As per the agreement, India got the right to nominate the first president.
- The bank will start with an initial paid-in-capital of USD 50 billion with each BRICS country contributing USD 10 billion.
- Making a strong pitch for speeding up the creation of the BRICS development bank, Prime Minister Narendra Modi had said last year that India hopes to ratify the agreement over the financial institution by 2014-end, and 2016 should be set as the target for its inauguration.