NEWS

Former Reserve Bank of India (RBI) Governor Urjit Patel has been appointed vice-president of the Beijing-based Asian Infrastructure Investment Bank (AIIB).

DETAILS

Mr. Patel

• Will serve a three-year term as one of the multilateral development bank’s five vice-presidents
• Had resigned as RBI Governor in 2018 in a surprise decision, citing “personal reasons” after serving for two years.

ABOUT AIIB

• Multilateral development bank
• Mission – improve social and economic outcomes in Asia and beyond.
• Headquarters – Beijing
• Commenced operations in January 2016.

Aim

• By investing in sustainable infrastructure and other productive sectors today,
• Connect people, services and markets that over time will impact the lives of billions and build a better future.

Membership

• There are more than 100 members now.
• Fourteen of the G-20 nations are AIIB members including France, Germany, Italy and the United Kingdom.

Voting Rights

• China is the largest shareholder with 26.61 % voting shares in the bank followed by India (7.6%), Russia (6.01%) and Germany (4.2 %).
• The regional members hold 75% of the total voting power in the Bank.

Organs

• Board of Governors: The Board of Governors consists of one Governor and one Alternate Governor appointed by each member country. Governors and Alternate Governors serve at the pleasure of the appointing member.
• Board of Directors: Responsible for the direction of the Bank’s general operations, exercising all powers delegated to it by the Board of Governors.
• International Advisory Panel: To support the President and Senior Management on the Bank’s strategies and policies as well as on general operational issues