The Union Cabinet on Thursday gave its nod to Exim Bank of India for entering into a Memorandum of Understanding (MoU) on general cooperation with the New Development Bank (NDB), a multilateral development bank established by the BRICS nations.
This MoU will be signed through the BRICS Interbank Cooperation Mechanism, which was established by five banks from the BRICS nations to enhance trade and economic relations among the BRICS countries and enterprises.
The BRICS Interbank Cooperation Mechanism now proposes to sign a MoU on general cooperation with the New Development Bank.
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.
There is no financial implication involved with signing of the MoU.
The participating institutions from the BRICS nations will be benefited by this MoU, release added. The establishment of the NDB — in July 2014 — 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.