Non-executive chairman of ICICI Bank and chairman of Infosys Ltd, KV Kamath will be the first president of the newly constituted BRICS Banks headquartered in Shanghai, China.

The key features of the Banks are as follows:

BRICS bank or BRICS development bank now known as New Development bank is a multilateral development bank started by BRICS states (Brazil, Russia ,India, and South Africa) as an alternative to US dominated World bank.

The idea to have a BRICS development bank or BRICS bank was first proposed in the 5th BRICS summit in Durban, South Africa in JULY 2009 New Delhi (India), Johannesburg (South Africa) and Shanghai (China) were competing for hosting the headquarters for this BRICS bank but Shanghai won the race becoming the headquarters of BRICS bank.

Objective of BRICS bank is to ensure economic stability for emerging nations in case of continuous US dollar fluctuations.

Also Read: K V Kamath named head of BRICS Bank

BRICS bank will have a capital of $50 billion with an equal contribution of $10 billion from each nation of BRICS.

Earlier China was interested in investing $41 billion raising a concern of China getting more powers as compared to its other members.

Also Read: The problem with BRICS

BRICS bank will Finance infrastructure projects in the developing world, which World bank and International monetary Funds did earlier for developing nations.