MoU between Exim Bank and NDB on general cooperation

The Dollar Business Bureau 

The Union Cabinet on Thursday approved the signing of a memorandum of understanding (MoU) between Export-Import Bank of India (Exim Bank) and New Development Bank (NDB) - promoted by BRICS, along with other development financial institutions of BRICS member countries, with the purpose to strengthen trade and economic relations.

“Headed by Prime Minister Narendra Modi, the Union Cabinet has given its nod 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,” an official release said. There is no involvement of financial implication with the signing of MoU, it added. 

“This proposal will boost trade and economic ties among the BRICS nations. The institutions from the BRICS countries which are participating will be benefitted by the MoU,” the release said. 

The MoU is a non-binding umbrella pact and aimed at creating a cooperation framework in line with the national laws and regulations, in addition to the skills transfer and knowledge sharing between the signatories. 

In addition, the establishment of an NDB shows the close ties among BRICS nations and provides a powerful instrument for enhancing economic collaboration and assisting India in playing an enhanced role internationally.

Keeping in view the strategic significance of cooperation for inclusive economic growth and sustainable development, the inking of MoU is important in view of the cooperation extended by the member nations in several forms for facilitating and promoting trade of goods and services, and also investments in common projects among BRICS nations, the release said. 

Earlier, five banks from BRICS countries had set up the BRICS Interbank Cooperation Mechanism to boost trade and economic ties amongst the member nations and enterprises.