Context: Abdolnasser Hemmati, Governor of the Central Bank of Iran, announced that Iran is advancing toward official membership in the BRICS New Development Bank (NDB). The announcement came during his visit to India for the BRICS finance ministers and central bank governors meeting held in Jaipur.
What is the NDB?
- A multilateral development bank (MDB) established by the founding BRICS nations, formerly called the BRICS Development Bank.
- Headquarters: Shanghai, China
- What it does: provides loans, equity participation, guarantees and technical assistance to finance sustainable infrastructure and green development projects across emerging markets and developing countries.
- Current President: Dilma Rousseff, former President of Brazil
History and Formation
- 2012 — the idea of a South–South development bank was first mooted by India at the 4th BRICS Summit in New Delhi
- 15 July 2014 — the formal Agreement establishing the NDB was signed at the 6th BRICS Summit in Fortaleza, Brazil, alongside a $100 billion Contingent Reserve Arrangement (CRA)
- July 2015 — the bank entered into force, with India’s K.V. Kamath as its first elected President
Membership and Shareholding
- Founding members: Brazil, Russia, India, China and South Africa — each initially contributing an equal share of the $50 billion subscribed capital, out of $100 billion authorised capital
- Members admitted since: Bangladesh, United Arab Emirates, Egypt, Algeria and Uzbekistan, which officially joined on 5 June 2026 as the bank’s tenth member.
- Prospective members — admitted by the Board of Governors but yet to deposit their instrument of accession: Uruguay, Colombia, Ethiopia, Angola and Zimbabwe.
2. The PM CARES Fund
Source: Times of India
Context: The PM CARES Fund released its delayed FY 2023-24 and FY 2024-25 audited statements, showing expenditure of just ₹87.85 lakh in FY25 against ₹1,279.9 crore income and an ₹8,452.06 crore closing balance.
What is the PM CARES Fund?
- Full name: the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.
- It is a dedicated national public charitable trust set up to provide assistance, emergency relief and rehabilitation during public health crises, natural calamities or man-made disasters.
- Established: registered on 27 March 2020 under the Registration Act, 1908, in New Delhi
- Why it was created: in the wake of the COVID-19 pandemic, to create a flexible national corpus for healthcare infrastructure, indigenous medical research and direct financial relief
Key Features
- Governance: chaired by the Prime Minister of India (ex-officio), with the Ministers of Defence, Home Affairs and Finance as ex-officio trustees, alongside eminent nominated trustees who serve pro bono.
- Tax benefit: donations qualify for 100 per cent tax exemption under Section 80G of the Income Tax Act, 1961.
- CSR eligibility: corporate contributions count as eligible Corporate Social Responsibility spending under Schedule VII of the Companies Act, 2013.
- FCRA exemption: granted an exemption under the Foreign Contribution (Regulation) Act, with a dedicated bank account to accept international donations — similar to the Prime Minister’s National Relief Fund (PMNRF).
PM CARES vs PMNRF
- Both are charitable trusts, both give 80G exemption, both accept foreign donations.
- The difference: the PMNRF dates from 1948, set up by Jawaharlal Nehru to assist Partition refugees, and its funds are used mainly for relief to families affected by natural calamities and for medical treatment. PM CARES was created in 2020 specifically for emergency and pandemic-related response, with a broader mandate including healthcare infrastructure and research.
