India joins Asian Infrastructure Investment Bank;

India joins Asian Infrastructure Investment Bank; becomes 2nd largest shareholder among 50 founding countries

Jun 30 India and representatives from 49 other founding countries, have signed an agreement that provided legal framework for the China-led '100 Billion' US Dollar, Asian Infrastructure Investment Bank or AIIB. The 60-article agreement specified each member's share as well as governance structure and policy-making mechanism of the bank, which is designed to finance infrastructure in Asia. The delegates from 50 founding countries gathered at the Great Hall of the People in the Chinese capital Beijing for the signing ceremony yesterday. Seven more countries are due to sign by the end of the year. With Japan, the other large Asian economy besides China, opting out of the Bank's membership, India is its second largest shareholder with a stake of 8.52 per cent and voting share of 7.5 per cent. China being the largest shareholder at 30.34 per cent and it has retained 26.06 per cent of the voting rights. AIIB will have authorised capital of 100 billion US Dollars, and Asian countries will contribute up to 75 per cent of the total capital. Each member will be allocated a share of the quota based on their Economic size and not contribution to the Bank's authorised capital. AIIB is expected to go into operation later this year. Speaking at the signing ceremony, China's Finance Minister Lou Jiwei said the AIIB will uphold high standards and follow international rules in its operation, policy-making and management to ensure efficiency and transparency. US and Japan, which oppose the AIIB, are the most prominent countries not to join. AIIB is seen as a rival to the World Bank.