India to lead BRICS Bank, rival of World Bank

India assumes the chairmanship of the BRICS nations' USD 50 billion New Development Bank to finance "inclusive and responsive" needs of particularly emerging economies, Prime Minister Narendra Modi said today.

BRICS nations -- Brazil, Russia, India, China and South Africa -- today reviewed the progress made in setting up of the New Development Bank as well as a USD 100 billion liquidity reserve fund as the emerging economies seek greater voice on the world stage.

"India attaches the highest importance to BRICS. We are honoured to assume the Chairmanship of BRICS from February 1, 2016 and build on the great work done by other Members," Modi said in his opening remarks at the BRICS meeting.

The Bank, which the BRICS countries see as an alternative to the World Bank, is to have its capital expanded to USD 100 billion within the next couple of years. The Bank was agreed upon in a meeting of BRICS in Russian city of Ufa in July.

Kundapur Vaman Kamath, 67, a former head of India's largest private bank, ICICI Bank, has been appointed president of Shanghai-headquartered bank. It plans to issue its first loans, yet to be agreed, in April.

"The New Development Bank, the Currency Reserve Arrangement, Strategy for BRICS Economic Cooperation - these are clear evidence of our vision and our resolve. Together, we can also give shape to G20," Modi said.

The BRICS USD 100 billion currency reserve pool has been set up to protect the group countries' currencies from volatility in global markets.

China is to contribute USD 41 billion to the Fund while Brazil, India and Russia will chip in USD 18 billion each. South Africa will contribute USD 5 billion.

"We are pleased that a BRICS partner, China, takes over the Presidency of G20 in December 2015. We assure China of full support during its Presidency," Modi said.

(Image credits: Indiatimes)