Union Cabinet approves pact between EXIM Bank, New Development Bank:
Union Cabinet today approved a pact between Export-Import Bank of India (Exim Bank) and BRICS-promoted New Development Bank (NDB), along with other development financial institutions of member nations, with an aim to strengthen trade and economic ties.
The Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for signing of a Memorandum of Understanding (MoU) on general cooperation with NDB through the BRICS Interbank Cooperation Mechanism by Government at the level of Secretary, Department of Economic Affairs/ Export Import Bank of India .
The MoU is a non-binding umbrella agreement aimed at establishing a cooperation framework in accordance with the national laws and regulations, besides skills transfer and knowledge sharing amongst the signatories.
Further, the release said that establishment of the NDB reflects the close relations among the BRICS countries and provides a powerful instrument for increasing their economic cooperation and help India play an enhanced international role.