China-backed Asian Infrastructure Investment Bank (AIIB) in which India is a founder member along with other 56 countries was formally established here and expected to start operation next month.
Articles of Agreement outline the financial share of each founding member as well as rules for policymaking, governance structure and business and operational systems for the bank.
The bank’s establishment came after 17 funding members of the AIIB, which account for just over 50% of its share capital, ratified the agreement on the bank.
With authorised capital of USD 100 billion and subscribed capital of USD 50 billion.
AIIB, based in Beijing will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.
China, India and Russia are the three largest shareholders, taking a 30.34 per cent, 8.52 per cent, 6.66 per cent stake respectively in the newly-formed bank. Based on the shareholding, India is expected to get the post of the Vice President.