Why in the news
Iran’s central bank chief Abdolnasser Hemmati, in India for a BRICS finance ministers and central bank governors meeting in Jaipur, said his country is moving toward NDB membership. Separately, the PM CARES Fund published overdue audited accounts for FY 2023-24 and FY 2024-25.
New Development Bank (NDB)
- A multilateral development bank created by the BRICS founders, once called the BRICS Development Bank.
- Headquarters: Shanghai, China; President: Dilma Rousseff, ex-President of Brazil.
- Offers loans, equity participation, guarantees and technical assistance for sustainable infrastructure and green projects in emerging economies.
Timeline
| When | Event |
|---|
| 2012 | India proposed a South-South development bank at the 4th BRICS Summit, New Delhi |
| 15 July 2014 | Establishing Agreement signed at the 6th BRICS Summit, Fortaleza, with a $100 billion Contingent Reserve Arrangement |
| July 2015 | Bank came into force; K.V. Kamath of India was the first elected President |
Membership
- Founders: Brazil, Russia, India, China and South Africa, splitting the $50 billion subscribed capital equally (authorised: $100 billion).
- Later entrants: Bangladesh, UAE, Egypt, Algeria and Uzbekistan (5 June 2026, tenth member).
- Prospective: Uruguay, Colombia, Ethiopia, Angola, Zimbabwe, cleared by the Board but yet to complete accession.
PM CARES Fund
- Expansion: Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund; a charitable trust set up on 27 March 2020 in New Delhi.
- Purpose: relief and rehabilitation in health crises and disasters; created after COVID-19 for healthcare infrastructure, research and direct relief.
- FY25 accounts: income ₹1,279.9 crore, spending ₹87.85 lakh, closing balance ₹8,452.06 crore.
- Governance: Prime Minister as ex-officio chair; Defence, Home and Finance Ministers as ex-officio trustees; nominated trustees serve pro bono.
- Benefits: 100% tax exemption under Section 80G, CSR eligibility (Companies Act, 2013), and FCRA exemption with an account for foreign donations.
PM CARES versus PMNRF
| Point | PMNRF | PM CARES |
|---|
| Origin | 1948, set up by Jawaharlal Nehru for Partition refugees | 2020, for emergency and pandemic response |
| Main use | Relief to families hit by natural calamities and medical treatment | Broader mandate including healthcare infrastructure and research |
| Common ground | Charitable trust, 80G exemption, foreign donations accepted | Same |
Exam angle
- NDB headquarters: Shanghai; first President: K.V. Kamath.
- Tenth NDB member: Uzbekistan.
- PM CARES registered 27 March 2020; tax relief under Section 80G.