Which bank has been established in China by BRICS countries?

The correct answer is C) New Development Bank (NDB). It was set up by the BRICS grouping, with its headquarters in Shanghai, China. The agreement was signed at the 2014 Fortaleza summit, and the bank began operating in 2015. It was originally called the BRICS Development Bank. Its purpose is to finance infrastructure and sustainable development projects in emerging economies and developing countries.

• A) New Industrial Development Bank: No such institution exists. The bank's name is New Development Bank, so this is a distractor built on the correct name.
• B) New Agricultural Development Bank: No BRICS bank of this name exists. Agricultural finance is not the mandate of the NDB.
• D) New Commercial Bank: Also not a real BRICS institution. It is a generic-sounding name with no basis in the grouping's decisions.

Core concept: multilateral development banks and BRICS cooperation beyond the IMF and World Bank. For Mains GS-II and GS-III, it links to debates on alternative financing for infrastructure and the reform of global financial architecture. Since 2017, membership has widened beyond the five founders to include countries such as the UAE, Bangladesh and Egypt.

Trap: Aspirants often confuse the NDB with the AIIB (Asian Infrastructure Investment Bank), which is also China-linked but is a separate, Beijing-based multilateral body, not a BRICS bank.