New Delhi: The BRICS Development Bank would be headquartered in Shanghai China. It was revealed by Russian presidential aide Yury Ushakov said last week.
Earlier, South Africa had proposed to host the Bank. However, New Delhi and Shanghai were two cities shortlisted for it.
The bank will have an initial capital of $50 billion, with China contributing $41 billion, Brazil, Russia and India giving $18 billion each, and South Africa contributing $5 billion.
The development bank would help finance infrastructure and sustainability projects while the proposed Contingent Reserve reserve fund is aimed to help fend off currency and balance of payments crises.
The BRICS development bank and the Contingent Reserve Arrangement are seen as a counterweight to the Western-dominated financial organisations, the World Bank and the International Monetary Fund.
The bloc, comprising Brazil, Russia, India, China and South Africa, accounts for over 40 percent of the global population and has a combined GDP of $24 trillion.
The proposed BRICS bank is expected to foster greater financial and development cooperation among the five emerging markets.