The Union Cabinet chaired by the Prime Minister Narendra Modi on 18 November 2015 gave its approval for the ratification and submitting of the Articles of Agreement (AoA) of the Asian Infrastructure Investment Bank (AIIB).
India will be the second-biggest shareholder with 8.4 percent, followed by Russia, which will have a 6.5 percent stake.
How the ratification of AoA of AIIB will help India?
• Establishment of the AIIB will help India and other signatory countries to raise and avail resources for their infrastructure and sustainable development projects.
• It will enable India to play a prominent role in the governance of a multilateral institution.
About Asian Infrastructure Investment Bank
• The Asian Infrastructure Investment Bank (AIIB) is a proposed international financial institution which is focused on supporting infrastructure construction in the Asia-Pacific region.
• The bank was proposed by China and supported by 37 regional and 20 non-regional Prospective Founding Members, 53 of which have signed the AoA that form the legal basis for the proposed bank.
• The bank will start operation after the agreement enters into force, which requires ratifications from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock.
• The Bank will be headquartered in Beijing.
• The authorised capital of AIIB is 100 billion US Dollar and the initial subscribed capital is expected to be around 50 billion US Dollar. The paid-in ratio will be 20 percent.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
What: Ratified by India
When: 18 November 2015