The union cabinet has approved the establishment of New Development Bank and the BRICS Contingent Reserve Arrangement (CRA). The Bank will help India and other member countries to raise and avail resources for infrastructure and sustainable development projects. In the New Development Bank each participant country will be given one vote with none having veto power unlike the World Bank, which assigns votes based on the capital share. The BRICS CRA is aimed at providing short-term liquidity support to the members to help mitigate BOP crisis situation through currency swaps, in case such a situation arises.
