The BRICS New Development Bank (NDB)
International Relations · Wednesday, 19 August 2026
Iran is advancing toward official membership in the BRICS New Development Bank. The NDB, established in 2014 and headquartered in Shanghai, finances sustainable infrastructure and green projects in emerging markets with equal voting rights among founding members and promotes local-currency lending.
Quick highlights
- NDB established by BRICS nations; formal agreement signed July 15, 2014 in Fortaleza.
- Headquartered in Shanghai; first President was India’s K.V. Kamath.
- Founding members (Brazil, Russia, India, China, South Africa) have equal voting rights; no veto power.
- Expanded members include Bangladesh, UAE, Egypt, Algeria and Uzbekistan (2026).
- Focus: sustainable infrastructure, green bonds, local currency lending and counter-cyclical support.
- Iran advancing toward official membership as announced by its Central Bank Governor.
Context
Abdolnasser Hemmati, Governor of the Central Bank of Iran, announced that Iran is advancing toward official membership in the BRICS New Development Bank (NDB).
Key Facts
NDB proposal mooted by India in 2012; agreement signed 2014; operational 2015. Headquarters Shanghai with regional hubs in Johannesburg, São Paulo, Moscow and GIFT City. Founding members hold equal voting rights with minimum 55% collective share. Current expanded members: Bangladesh (2021), UAE (2021), Egypt, Algeria (2024), Uzbekistan (2026). Functions include long-term loans for infrastructure, local-currency lending, green financing and emergency assistance.
Significance
NDB provides South-South cooperation alternative to traditional MDBs, reduces forex risk through local currency loans and supports climate and infrastructure needs of emerging economies without single-country veto power.
Challenges / Way Forward
Maintaining founding BRICS voting majority while expanding membership and scaling project preparation capacity in borrower countries remain key tasks. Continued focus on green and sustainable projects will enhance its global relevance.
Exam Angle
GS Paper II – IR: multilateral development banks, BRICS institutions. Prelims: NDB establishment year (2014), headquarters, first President, expanded members list, difference from Bretton Woods (equal voting).
Remember this
- NDB formal agreement: July 15, 2014 at 6th BRICS Summit, Fortaleza.
- Headquarters: Shanghai, China; first President: K.V. Kamath (India).
- Founding members have equal voting rights; no single-country veto.
- Expanded members: Bangladesh, UAE, Egypt, Algeria, Uzbekistan (2026).
- Iran advancing toward official membership.
- Focus areas: sustainable infrastructure, local currency lending, green bonds.