UPSC CDS GS Economy Questions Part 2

Only statement (1) is correct with regard to the proposed AsianInfrastructure Investment Bank (AIIB). India along with the other 20 member nations is the founding member of the AIIB and had signed agreement in this regard in October 2014. It should be noted that India is the second largest shareholder of AIIB (after China). The bank will lend designed finance to the infrastructure projects, like construction of roads, ports, railways, etc. in Asia. AIIB is a multilateral development bank proposed by China, which seeks to provide support to the infrastructure projects in Asia. TheBank is to be headquartered in Beijing (not Shanghai). Hence,statement (2) is not correct.